Published on 07/23/2026 at 12:50 am EDT
(Reuters) - Chinese stocks drifted lower on Thursday, led by declines in AI and chip-related shares, while defensive sectors gained as investors continued to rotate out of richly valued tech names.
** At the midday break, the Shanghai Composite index was down 0.2% at 3,859.69 points. The blue-chip CSI300 index was down 0.2%.
** Tech sectors continued to experience a correction, with the tech focused

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50 Index sliding 4.1%. The CSI Semiconductor Index tumbled 5.1% and the AI sector declined 2.7%.
** Helping offset some losses, the banking sector added 0.4% and the rare earth sector added more than 2%. The new energy vehicle sector climbed 2.5%.
** Among other gainers, the CSI Shanghai-Shenzhen-Hong Kong Gold Industry Equity Index jumped nearly 3% as gold rallied.
** "The recent drop in A-shares is mostly a 'passive' reaction to external risks," analysts at Datong Securities said in a note. "Looking at market conditions, the pullback has already released a lot of pressure from leveraged trading and negative sentiment, and technical indicators suggest stocks may be oversold."
** Meanwhile, regulators have been holding frequent meetings to signal stability, and listed companies are actively buying back shares and increasing their holdings. With support building from multiple sides, market confidence should get a boost, they added.
** In Hong Kong, the Hang Seng Index was up 1.3% at 25,227.06. The Hang Seng Tech Index added 0.8%.
** Market heavyweight Tencent bounced 2% after shedding more than 7% in the previous session.
** Around the region, stocks rose on Thursday after U.S. technology firms outlined significant capital spending plans that are likely to benefit chipmakers in the region, while the escalating war in the Middle East sent oil prices to six-week highs.
(Reporting by Jiaxing Li in Hong Kong; Editing by Mrigank Dhaniwala)

Sumber : Reuters