- Market Performance:
- China’s CSI300 Index and Shanghai Composite ended 0.3% lower.
- Hong Kong’s Hang Seng Index fell 0.9%.
- Both CSI300 and Hang Seng gained about 1% over the week.
- Sector Insights:
- Tech-heavy markets in the U.S. and Asia faced pressure amid concerns over AI stock valuations.
- China’s tech-focused STAR50 Index was roughly flat for the week.
- Onshore semiconductor shares fell 1.3% after reports that the U.S. will restrict Nvidia from selling certain AI chips to China.
- Hong Kong tech majors fell 1.8% after a near 3% rally the previous day.
- Investor Activity:
- Foreign institutional investors increased positions in Chinese equities in Q3, with underweight reduced from -1.6% to -1.3% (UBS).
- Holdings of top 40 global investors in Chinese equities reached their highest since Q1 2023.
- Trade Developments:
- The Trump administration announced a one-year pause on U.S. port fees for China-linked vessels and confirmed negotiations on shipbuilding and ocean logistics trade issues.
- China’s exports unexpectedly slumped in October.