China's Tech Shares Slide Amid Military Parade Focus

On Tuesday, China's stock markets witnessed a decline, primarily influenced by technology stocks. Investors began withdrawing profits after a significant rally in artificial intelligence-related shares, redirecting their focus to the country's most extensive military parade ever.

The blue-chip CSI300 Index experienced a 0.9% drop during the lunch break, with the Shanghai Composite Index losing 0.8%, and the Hong Kong benchmark Hang Seng shedding 0.6%. Despite the ongoing success of tech shares, analysts point out that valuations remain relatively stable, with China's emphasis on AI fuelling its industrial trajectory.

Despite the downturn, a surge in outstanding margin financing hit a decade-high at 2.29 trillion yuan. As the nation continues to advance in software application, optimism grows due to an expanding talent pool. Meanwhile, anticipation builds for a speech by President Xi Jinping at the upcoming military parade, with the CSI Defense Index slipping 3%.

(With inputs from agencies.)