China, HK stocks fall on tech profit-taking, eyes on plenum readout

Pop Mart International

23/10/2025 05:28

SHANGHAI, Oct 23 (Reuters) - China and Hong Kong stocks fell on Thursday, dragged by tech shares, as investors turned cautious ahead of next week's meeting between Chinese President Xi Jinping and U.S. President Donald Trump, and a key policy readout after a Communist Party conclave in Beijing.

** China's blue-chip CSI300 Index .CSI300 dropped 0.6% by the lunch break, while the Shanghai Composite Index .SSEC lost 0.7%. Hong Kong benchmark Hang Seng .HSI was down 0.1%.

** Investors continued to take profits after a strong rally in artificial intelligence shares this year and weighed where to deploy capital next.

** The CSI AI Index .CSI930713 fell 2.5%, while the tech-focused STAR50 Index .STAR50 dropped 1.6%. Tech majors traded in Hong Kong .HSTECH fell 0.8%.

** "Some investors are considering rotating positions from technology to new consumption names in H-share market...but there's still plenty of concerns about the fundamentals," analysts at UBS said.

** While Popmart delivered a strong beat in Q3 revenue, investors harbor concerns about whether the firm can deliver more blockbuster IP like Labubu, especially when Labubu resale price is falling, they said. Pop Mart International Group Ltd 9992.HK was down nearly 10%.

** Onshore software stocks 515230.SS were little changed as the Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, from laptops to jet engines, to retaliate against Beijing's latest round of rare earth export restrictions.

** The elite Central Committee of China's ruling Communist Party is wrapping up its Fourth Plenum on Thursday. The four-day meeting, which began Monday, is expected to produce a communique outlining the government's economic, political and social agenda, including development plans for the next five years.

 (Reporting by Shanghai Newsroom; Editing by Ronojoy Mazumdar)

 ((li.gu@tr.com))