The benchmark CSI300 declined 0.4% by the lunch break to log a 7.6% monthly drop, tracking steep losses in US tech majors such as Alphabet and Intel. Mainland tech took the brunt of the downturn, with the CSI 5G Communications Index sliding up to 6% in early trade and optical module maker Eoptolink Technology down nearly 8%. Bucking the regional trend, Hong Kong's Hang Seng Index rose 1.6% alongside mainland consumer staples and property developers.
Key points
Growing investor concern over heavy artificial intelligence expenditures is weighing heav…: Growing investor concern over heavy artificial intelligence expenditures is weighing heavily on Asian tech hardware suppliers.
Hong Kong shares managed a notable rebound despite the broader mainland technology sector…: Hong Kong shares managed a notable rebound despite the broader mainland technology sector lingering near a two-year low.
Capital is rotating into mainland consumer staples and Hong Kong-listed property develope…: Capital is rotating into mainland consumer staples and Hong Kong-listed property developers as defensive shields against tech volatility.
Sources checked by our analysis pipeline: 1
The CSI300 Index, which tracks China's blue-chip stocks, fell 0.4% to a one-year low by the lunch break. The Shanghai Composite Index declined 0.3%. In contrast, Hong Kong's benchmark Hang Seng Index gained 1.6%, supported by a rebound in technology majors.
The CSI300 was down 0.9% for the week and 7.6% for October, putting it on course for its biggest monthly decline since July. Over the past 12 weeks, the index has shed 14%, marking its longest losing streak on record. The Hang Seng, meanwhile, was up 1.1% for the week, Reuters reported.
Read more: Global Market: South Korean stocks tumble over 5% as AI spending concerns hit chipmakers
AI stocks lead declines
Technology shares bore the brunt of the selling pressure in mainland China, tracking overnight losses on Wall Street and declines across Asian markets as investors reassessed the sustainability of massive investments in artificial intelligence infrastructure.
Shares of Alphabet, Amazon.com and Intel fell in the US market amid concerns over mounting AI-related expenditure and its impact on profitability and cash flows. South Korean memory chipmaker SK Hynix also…
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