Chinese Tech Stocks Tumble Amid Regulatory Concerns
Chinese tech stocks faced a significant downturn as investors reacted to reports of potential regulatory measures. Following a military parade in Beijing, concerns over the stock market's rapid surge, particularly in the tech sector, prompted profit-taking and fears of fund outflows due to upcoming index adjustments.
On Thursday, Chinese tech stocks suffered a notable downturn as investors opted to secure profits following media reports of potential regulatory actions aimed at curbing market speculation. The decline was further influenced by the conclusion of a politically significant military parade in Beijing, which had previously driven market sentiment.
The Shanghai Composite Index, after reaching decade-high levels, plunged nearly 2% in early trading, facing its steepest fall in almost five months. The blue-chip CSI300 index dropped 2.5%, and Hong Kong's Hang Seng Index decreased by over 1%. Bloomberg News reported that China's financial regulators are mulling over measures to cool down the stock market.
With tech stocks being central to China's recent stock market rally, the selloff was notable, as AI chipmaker Cambricon saw shares slump 13%. The approaching index rebalancing sparked concerns of further market adjustments. Analysts suggest that without supportive policies or new industry initiatives, rational market behavior may soon prevail.
(With inputs from agencies.)
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