China’s technology stocks fell into correction territory after purported profit taking by investors and trade war uncertainties.
Tech stocks listed in Hong Kong fell into correction territory Monday, as investors booked profits, while trade war uncertainty and U.S. moves to restrict Beijing’s access to high-end tech also weighed on sentiment.
The Hang Seng Tech index, which tracks the some of the largest mainland Chinese technology companies listed in Hong Kong, has declined 11% since its March 18 high, after dropping over 2% Monday.
Chinese and international institutional investors began returning to Chinese stocks after Beijing unveiled stronger stimulus measures last September. The investor inflow pushed the Hang Seng Tech Index to a three-year high earlier this month.
Chinese tech stocks got a sharp boost since the release AI startup DeepSeek’s R1 model in January challenged the U.S.-led AI ecosystem, claiming superior performance at much lower costs than other established AI players.
