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STAR 50 Index Slides ~29% MTD as Analysts Say Weak Chip Stocks May Reflect Sector Rotation
2026-07-30 13:38:45 In wake of previously surging AI and semiconductor-related shares, China tech stocks plunged on Thursday (30th), as concerns over excessive valuations and crowded positioning intensified sector rotation. The STAR 50 Index slumped more than 6% to its lowest level since April 30. YUANJIE TECHNOLOGY (688498.SH) and HUA HONG GRACE (688347.SH) tumbled 13.4-17.4% in afternoon trading. After spiking about 75% over the past three months, the STAR 50 Index has fallen nearly 29% in July and is poised to mark its sixth decline in seven trading days. The three Chinese major optical module leaders - EOPTOLINK (300502.SZ), TFC (300394.SZ) and ZHONGJI INNOLIGHT (300308.SZ) - each lost more than 13%, dragging the CSI 300 Index down about 2%. The onshore benchmark index has slid nearly 10% in July and is on track for its worst performance since January 2016. Meanwhile, consumer staples and utilities sub-indices rose 2.8% and 1% respectively on Thursday, leading gains among CSI 300 sector indices. Cooling global sentiment toward AI investment also affected China's onshore market. In addition to concerns over valuations and positioning, investors are becoming increasingly wary of intensifying competition, cyclical trading and signs that companies may be overinvesting in AI infrastructure and capacity. Investors are awaiting fresh catalysts from the upcoming Politburo meeting, though expectations are leaning more toward targeted measures to reinforce stability rather than large-scale stimulus plans. ~ AASTOCKS Financial News Website: www.aastocks.com | |