China, HK Stocks Fall as Chip Gains Fail to Offset Losses

China and Hong Kong Stocks Decline

Chinese and Hong Kong stocks fell on Thursday, as weakness in financial, consumer, and property sectors overshadowed gains in semiconductor and AI shares.

Index Performance

China's blue-chip CSI300 Index dropped 0.6%, the Shanghai Composite lost 0.1%, and Hong Kong's Hang Seng fell 2.3%.

Sector Highlights

Liquor shares fell 2.4%, and the CSI300 Financial Index lost 1%. In contrast, semiconductor stocks rose, with the CSI Semiconductor Index gaining 1.4% and chip giant Hua Hong jumping over 10% in Hong Kong.

China's tech-focused STAR 50 Index climbed 1.3%, extending its year-to-date gains to 37%. Analysts noted investor attention shifting toward hardware technology sectors representing China's push for advanced productive forces.

Tech majors listed in Hong Kong fell 1.5%, weighed by a sharp profit drop at e-commerce group PDD Holdings, which sent its New York-listed shares down 10% overnight.

Mainland property developers in Hong Kong fell 2.6%, and materials shares slumped 5.5%. Chinese EV maker NIO's Hong Kong shares jumped up to 11% after its new SUV model launch.