China and Hong Kong stocks opened lower on Monday, tracking regional peers as investors grew concerned over the sustainability of the AI rally after strong U.S. jobs data fuelled fears of Federal Reserve rate hikes. China's blue-chip CSI300 Index opened 2.4% lower, while the Shanghai Composite Index was down 2.2%. Hong Kong's benchmark Hang Seng opened 1.5% lower. The tech rally in China has been driven largely by the chip supply chain, closely mirroring performances in global stocks such as Micron and Nvidia. Shares of Zhongji Innolight, an Nvidia supplier of optical components and a bellwether for China's AI rally, fell 4% at market open. The company has recently overtaken CATL as the biggest weight in China's CSI300 benchmark. The tech-focused STAR50 Index opened 4.8% lower, while onshore semiconductor shares slumped more than 5%. Wall Street's nine-week winning streak ended with a thud on Friday, as red-hot technology stocks suffered their largest daily decline since April 2025 after a hot jobs report fuelled fears of a hawkish policy pivot from the U.S. central bank.
China, HK stocks open lower as global tech selloff spreads to Asia
China and Hong Kong stocks opened lower, mirroring regional declines as investors worried about the AI rally's sustainability. Strong U.S. jobs data fueled fears of Federal Reserve rate hikes, impacting tech shares, including Nvidia supplier Zhongji Innolight. Wall Street also saw a significant tech stock drop on Friday.
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