Tech Shares Dive: Hong Kong and China's Downward Spiral

Hong Kong and China stocks fell on Friday, marking weekly declines driven by a drop in tech shares. The Hang Seng Tech Index and the Hang Seng Index both suffered losses. Profit-taking pressures affected major tech companies, leading investors to step back following an earlier rally.

In recent trading, Hong Kong and China stocks experienced a downturn, with weekly losses attributed to declining tech shares. The Hang Seng Tech Index notably fell by 3.4% on Friday, while the Hang Seng Index also decreased by 2.1%. These key indexes faced consecutive weekly losses, a first since January.

Hong Kong's tech sector saw significant moves, with Semiconductor Manufacturing International Corporation's shares plummeting 7.5% to a one-month low, and Alibaba losing 3.5%. Meanwhile, China's CSI300 index recorded a 1.5% fall, the largest setback since January, leading to a weekly decline of 2.3%. The Shanghai Composite Index also dipped 1.3%.

On the mainland, the tech-focused Star 50 Index witnessed a 2.1% drop, with AI-related shares slipping by 3%. Kingston Securities' Executive Director Dickie Wong noted the pullbacks, while optimism surrounding China's 'Two Sessions' and President Xi Jinping's recent meetings has been factored into the stock levels, triggering profit-taking actions by investors.

(With inputs from agencies.)