Tech Stocks Tumble: Investor Caution Grows Pre-Xi-Trump Meeting

China and Hong Kong stocks fall due to tech shares decline, driven by investor caution ahead of a key meeting between Presidents Xi and Trump. The CSI AI Index drops 2.5%, with investors pondering capital reallocation. Pop Mart sees revenue success but faces concerns over future IP success.

Shares in China and Hong Kong experienced a downturn on Thursday, with technology stocks leading the decline. Investor sentiment turned cautious ahead of the upcoming meeting between Chinese President Xi Jinping and U.S. President Donald Trump, along with a significant policy announcement following the Communist Party's conclave in Beijing.

The CSI300 Index in China slid 0.6% by midday, and the Shanghai Composite Index decreased by 0.7%. Hong Kong's Hang Seng Index also edged lower, dropping 0.1%. Investors, after benefiting from a robust rally in artificial intelligence shares earlier this year, are assessing potential new investment avenues.

Some analysts indicate a potential shift in investor focus from technology to consumer shares within the H-share market. However, there are lingering concerns about market fundamentals. Despite Pop Mart International Group Ltd's substantial Q3 revenue performance, skepticism remains about its ability to replicate past successes with new intellectual property.

(With inputs from agencies.)