Modest Gains Persist Amidst Global Tech Selloff Concerns

Despite a global tech selloff, China and Hong Kong stocks posted modest weekly gains. While the CSI300 and Hang Seng both declined slightly on Friday, they rose around 1% this week. Foreign investors increased positions in Chinese equities, while China's STAR50 tech index remained stable.

China and Hong Kong stocks ended the week with slight gains despite Friday's declines. The blue-chip CSI300 Index and Shanghai Composite Index fell 0.3%, while the Hang Seng dipped 0.9%. However, both the CSI300 and Hang Seng Index recorded a rise of around 1% this week.

Amidst a global technology stock selloff, notably in the U.S. and other parts of Asia bracing for significant weekly declines, Chinese markets showed resilience. According to UBS analysts, foreign institutional investors have increased their positions in Chinese equities, lowering underweight positions marginally in the third quarter.

This shift has propelled top global investors' Chinese equity holdings to their highest level since early 2023. Meanwhile, the tech-focused STAR50 Index in China remained steady. The U.S. is also negotiating with China over shipbuilding dominance, impacting the semiconductor and tech shares landscape.

(With inputs from agencies.)