China stocks close week lower on AI selloff, Hong Kong shares hit one-year low

China stocks tumbled on Friday to close the week lower, dragged down by AI-related shares and logging their largest daily loss in three months, while Hong Kong shares fell to a fresh one-year low.

** China's blue-chip CSI300 Index closed down 3 percent, while the Shanghai Composite Index .SSEC lost 2.3 percent. Hong Kong's benchmark Hang Seng .HSI was down 1.8 percent.

** The losses came as South Korea's benchmark KOSPI .KS11 dropped as much as 9 percent and the Nasdaq .IXIC declined overnight, after investors took profits following a sharp rally in global chips and AI supply chain stocks.

** For the week, the CSI300 Index was down 1.5 percent, while the Hang Seng Index slid 5.2 percent, marking its largest weekly loss since April 2025.

** China's CSI Artificial Intelligence Index .CSI930713 fell 4.6 percent, while the CSI 5G Communication Index .CSI931079 tumbled 5.8 percent.

** Zhongji Innolight 300308.SZ, the world's leading optical module maker, slumped 5.3 percent.

** China's onshore market has recently shown a K-shaped divergence, with hardware technology stocks rising, while most other sectors, including traditional liquor and financial heavyweights, have declined.

** Non-ferrous metal shares .CSISNMIM fell 4.4 percent, while liquor stocks .CSI399997 dropped 3.1 percent.

** Meng Lei, China equity strategist at UBS, said he expects earnings growth for all onshore shares to accelerate to 11 percent this year from 3.9 percent last year, with first-quarter results showing that earnings are recovering at a faster pace.

** Over the medium term, he said, the rollout of more supportive policies, progress in tackling excessive competition, and a rising share of overseas revenue would all help boost profit margins.

** Tech majors listed in Hong Kong were down 3.4 percent on Friday and 7.6 percent this week, posting their worst week since October 2025.

Reuters

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