Chinese and Hong Kong stocks fall as CSI300 drops 1.5% and AI shares decline more

Chinese and Hong Kong stocks fell on Friday after an overnight US technology selloff, with the CSI300 down 1.5% by the midday break as mainland equities recovered part of their initial losses. Zhongji Innolight fell 8%, while other Chinese AI-related stocks also recorded larger declines than the broader mainland indexes. The moves followed concerns about the durability of the artificial intelligence surge.

Key Takeaways

• The Shanghai Composite fell 1.1%, while the Hang Seng Index was down 1% during Friday's session.
• The Star 50 Index and the AI Index fell as much as 5% before recovering some ground, while Hong Kong's Hang Seng Artificial Intelligence Index fell 4%.
• Zhipu fell as much as 15.4% amid concern about the timeline for Anthropic's planned initial public offering.
• The Nasdaq recorded its biggest single-day fall since April 2025 during the overnight Wall Street selloff.
• Bargain hunting helped mainland equities pare their initial losses after support measures announced by Beijing and renewed commitments from policymakers to prevent systemic financial risks.

Zhongji Innolight falls 8% as US revenue exposure draws attention

Zhongji Innolight makes optical transceivers used in data centres and fell 8% to a one-year low, Reuters reported. Most of the company's revenue comes from the United States, according to Reuters.

Eoptolink Technology drops 7% with Chinese AI hardware shares

Eoptolink Technology fell 7% during Friday's session, Reuters reported. The company was among Chinese AI hardware shares affected by the technology-led selloff.

Zhipu falls as much as 15.4% on Anthropic listing concerns

Zhipu fell as much as 15.4%, Reuters reported. The move came as investors expressed concern that a wider backlash against the artificial intelligence industry could affect the timeline for Anthropic's planned initial public offering.

Mainland and Hong Kong indexes record smaller declines than AI measures

The CSI300 declined 1.5% by the midday break and remained on track to end a 12-week losing streak, Reuters reported. The Shanghai Composite fell 1.1% during Friday's session.

Hong Kong's Hang Seng Index was down 1%, while the Hang Seng Artificial Intelligence Index fell 4%, Reuters reported. On the mainland, the Star 50 Index and the AI Index each fell as much as 5% before recovering some ground.

Bargain hunting pares mainland losses after initial selling

Bargain hunting helped mainland Chinese equities recover part of their initial losses during the session, Reuters reported. Mainland equities remained on course for weekly gains after support measures announced by Beijing and renewed commitments from policymakers to prevent systemic financial risks.

Nasdaq records its biggest single-day fall since April 2025

The Nasdaq recorded its biggest single-day fall since April 2025 during the overnight Wall Street selloff, Reuters reported. The decline in US technology shares followed concerns that a Democratic victory in the US midterm elections could bring tighter regulatory scrutiny of the artificial intelligence industry.

South Korea's KOSPI fell more than 8% at one point, while Japan's Nikkei fell 5%, Reuters reported.