China blue-chip stocks hit lowest level in over a year

what happened

Newsmetry API reports that Chinese and Hong Kong equities declined on Tuesday as a broad selloff in artificial-intelligence stocks spread across Asia. By the midday break, the CSI300 had lost 0.6%, reaching its weakest point since August 2025. The Shanghai Composite was down 0.3% at 3,787.16, its lowest level in three months.

Shanghai’s technology-heavy STAR50 fell as much as 3.6% before narrowing the decline to 0.7%. The ChiNext Composite slipped 0.1%. The CSI AI Index dropped 0.9% to a six-month low, while the CSI Semiconductor Index (.CSI931865) shed 0.5%; both have now fallen more than 30% from their July peaks. CXMT slid as much as 5.3% to its lowest level since July, despite reports of progress in memory-chip development.

Analysts at Sinolink Securities said investor doubts about the underlying strength of technology companies may not yet be fully reflected in valuations. They added that Chinese tech stocks could find it difficult to recover soon as the US AI rally also loses momentum. New-energy vehicle shares weakened after China said the value-added-tax export rebate would be reduced from April next year. The CSI New Energy Vehicle Index finished the morning session 3.2% lower.

In Hong Kong, the Hang Seng Index declined 0.4% to 24,176.05, while the Hang Seng Tech Index dropped 1.5%. Elsewhere in Asia, Japan’s Nikkei fell 2.20% and South Korea’s KOSPI plunged more than 6%.

why it matters

The retreat spans major Asian technology benchmarks and electric-vehicle shares. Markets are reassessing the durability of the AI-stock rally and the effect of rising competition.

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