China Tech Stocks Take a Hit Amid Geopolitical Tensions

China and Hong Kong stock markets faced a downturn on Tuesday driven by a sell-off in tech stocks amidst rising geopolitical tensions. The Hang Seng Tech Index dropped significantly, influenced by U.S. policy changes concerning China and profit-taking pressures in the global market, leading to a market retreat.

China and Hong Kong stock markets faced significant declines on Tuesday as tech heavyweights saw a sell-off, and escalating geopolitical tensions dampened investor sentiment. The Hang Seng Tech Index dropped 1.6% after opening with a sharp decline, with notable decreases from major companies like Alibaba and Baidu.

The broader market reflected this trend, with the Hang Seng Index and the CSI 300 Index both falling, as the Trump administration's plans to tighten semiconductor curbs on China contributed to investor unease. This policy, part of the 'America First Investment Policy,' has heightened pre-existing geopolitical concerns.

The trading downturn in Asia came after U.S.-listed Chinese stocks suffered on Monday, marking the steepest decline in the Nasdaq Golden Dragon China Index since October. Investors, initially buoyed by China's tech and AI prospects, are now reminded of the persistent volatility due to geopolitical factors.

(With inputs from agencies.)