Global Market: China stocks extend losing streak to 12 weeks as global AI selloff hits tech shares

The Shanghai Composite Index declined 0.3%. In contrast, Hong Kong's benchmark Hang Seng Index gained 1.6%, supported by a rebound in technology majors.US MarketsPowered ByAs on 30 Oct 2026, 01:30 AM ISTS&P 500 Top GainersGen Digital28.20(15.81%)Norwegian Cruise Line18.22(13.45%)Huntington Ingalls Indus316.21(13.23%)Builders FirstSource63.06(12.85%)Gainers»S&P 500 Top LosersServiceNow109.67(-26.95%)Fortinet139.10(-20.09%)Alphabet283.82(-12.64%)Alphabet282.32(-12.29%)Losers»The CSI300 was down 0.9% for the week and 7.6% for October, putting it on course for its biggest monthly decline since July.

Over the past 12 weeks, the index has shed 14%, marking its longest losing streak on record. The Hang Seng, meanwhile, was up 1.1% for the week, Reuters reported.Read more: Global Market: South Korean stocks tumble over 5% as AI spending concerns hit chipmakersAI stocks lead declinesLive EventsTechnology shares bore the brunt of the selling pressure in mainland China, tracking overnight losses on Wall Street and declines across Asian markets as investors reassessed the sustainability of massive investments in artificial intelligence infrastructure.Shares of Alphabet, Amazon.com and Intel fell in the US market amid concerns over mounting AI-related expenditure and its impact on profitability and cash flows.

South Korean memory chipmaker SK Hynix also declined more than 7% on Friday, adding to pressure on regional technology stocks.In mainland China, the technology-focused STAR50 index dropped 1.8%. The CSI 5G Communications Index, which tracks the sector, plunged as much as 6% in early trade.Read more: Global Market Today: Asian stocks slide as tech earnings disappoint, AI fears mountChinese optical module maker Eoptolink Technology tumbled nearly 8% and has lost 46% so far this month, reflecting the sharp correction in companies linked to the global AI infrastructure investment cycle.Hong Kong technology shares reboundDespite the broader weakness in Chinese equities, technology majors listed in Hong Kong staged a recovery, with the sector gaining 1.4%.

However, the gauge remained close to its lowest level in two years, indicating that investor confidence in the sector remains fragile.According to Reuters, Kenneth Fong, head of China internet research at UBS, said some internet stocks were increasingly being valued as though elevated AI investment would remain a permanent burden on earnings, with investors assigning limited value to the possibility of normalising cash flows or successful monetisation of AI investments.Fong noted that valuations of around 10-11 times price-to-earnings, after accounting for new AI investments, could present an opportunity as markets potentially underestimate the longer-term earnings benefits of these investments.Consumer stocks, property developers outperformWhile technology stocks remained under pressure, consumer staples offered some support to mainland markets, rising 1% during the session.Hong Kong-listed mainland property developers also advanced 2.7% as investors rotated toward sectors relatively insulated from the global technology selloff, Reuters reported.The divergence between mainland Chinese equities and Hong Kong-listed technology stocks highlighted uneven investor sentiment, with concerns over AI spending and valuations continuing to weigh on technology shares even as selective sectors attracted buying interest.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)(You can now subscribe to our ETMarkets WhatsApp channel)