【A-share blue chips post record 12-week losing streak】Hang Seng rises against the trend
Reuters reported that, before midday on Friday, the CSI 300 was down as much as about 0.4%, touching a roughly one-year low. It was down about 7.6% for October and around 0.9% for the week, and had fallen about 14% over the past 12 weeks—its longest weekly losing streak on record. Over the same period, the Hang Seng Index rose as much as about 1.6%, while Hong Kong-listed tech and internet stocks held up relatively well. The STAR 50 was down about 1.8%, and the 5G Communications Index plunged as much as about 6% in morning trading, following a global sell-off in AI stocks after a sharp drop in US-listed Alphabet and weaker-than-expected results from Amazon and Intel after the market close.
【Viewpoint】
This is not simply a case of “foreign investors fleeing.” Rather, the world is reassessing the returns on AI capital spending. After concerns about US stocks’ cash flows spread to South Korean chipmakers and Japanese “picks-and-shovels” stocks, China’s A-share hard-tech sector also came under pressure. The divergence between Hong Kong and mainland markets suggests investors are becoming more selective, favoring stocks that can “deliver” rather than indiscriminately abandoning Chinese assets.
【Opportunities/Risks】
Watch whether the CSI 300 can hold near its one-year low, and look for signs that the STAR 50 and communications sector have bottomed. If guidance from US AI giants turns more reassuring, Asian tech stocks may have a window for a rebound. Risks include elevated market pricing for a Fed rate hike in December, and rising costs driven by oil prices and tensions in the Middle East, which could prolong the pullback in risk appetite.
What do you think: has the AI narrative peaked, or is this a buying opportunity after the A-share sell-off?
#A股 #AI #沪深300 #Hong Kong stocks
$BTC $ETH
For reference only; this is not investment advice.
Reuters reported that, before midday on Friday, the CSI 300 was down as much as about 0.4%, touching a roughly one-year low. It was down about 7.6% for October and around 0.9% for the week, and had fallen about 14% over the past 12 weeks—its longest weekly losing streak on record. Over the same period, the Hang Seng Index rose as much as about 1.6%, while Hong Kong-listed tech and internet stocks held up relatively well. The STAR 50 was down about 1.8%, and the 5G Communications Index plunged as much as about 6% in morning trading, following a global sell-off in AI stocks after a sharp drop in US-listed Alphabet and weaker-than-expected results from Amazon and Intel after the market close.
【Viewpoint】
This is not simply a case of “foreign investors fleeing.” Rather, the world is reassessing the returns on AI capital spending. After concerns about US stocks’ cash flows spread to South Korean chipmakers and Japanese “picks-and-shovels” stocks, China’s A-share hard-tech sector also came under pressure. The divergence between Hong Kong and mainland markets suggests investors are becoming more selective, favoring stocks that can “deliver” rather than indiscriminately abandoning Chinese assets.
【Opportunities/Risks】
Watch whether the CSI 300 can hold near its one-year low, and look for signs that the STAR 50 and communications sector have bottomed. If guidance from US AI giants turns more reassuring, Asian tech stocks may have a window for a rebound. Risks include elevated market pricing for a Fed rate hike in December, and rising costs driven by oil prices and tensions in the Middle East, which could prolong the pullback in risk appetite.
What do you think: has the AI narrative peaked, or is this a buying opportunity after the A-share sell-off?
#A股 #AI #沪深300 #Hong Kong stocks
$BTC $ETH
For reference only; this is not investment advice.
