Chinese Chipmakers Lead Market Selloff as Tech Stocks Retreat

The CSI Semiconductor Index plummeted 9.4%, marking its most volatile session in nearly four years. The retreat hit industry leaders hard, effectively ending the momentum that had defined the sector earlier this year. Naura, which had enjoyed a 10-day rally, saw its share price drop 10% by the closing bell. Similar losses rippled across the sector, with SMIC, Giga Device, and Hua Hong Semiconductor recording declines between 6.7% and 10%.

While the tech-focused Star 50 Index fell 7.7%, the broader Shanghai Composite Index mirrored the downward trend with a 2% loss. Defensive sectors offered a rare pocket of stability as banking indexes bucked the prevailing sentiment, posting a 1.2% increase. Despite the volatility in the mainland, Hong Kong markets maintained a degree of resilience, buoyed by gains among major internet platforms.