China stocks fall, led by tech, as US inflation stokes Fed fears

Mainland Chinese shares were lower at the midday break on Thursday, with technology stocks leading the drop as global markets weakened, according to Business Recorder. The Shanghai Composite and the blue-chip CSI300 each shed 2%, while the tech-focused STAR50 plunged 3% and the ChiNext Composite fell 3.4%. UBS Securities strategist Lei Meng attributed the recent pullback mainly to an unwinding of crowded tech positions, with mutual funds also facing pressure from break-even redemptions.

Last month's American consumer price figures overshot expectations, briefly reviving bets that the Federal Reserve could raise interest rates. The dollar gained and Wall Street shares slipped on the news. Analysts at Commerzbank described the overnight inflation reading as the dominant story, saying it had revived worries about Fed rate increases.

In Hong Kong, the Hang Seng index lost 1.5%, its tech shares dropped 2.9% and Alibaba's Hong Kong shares slumped 4.8%. Investors are also watching China's third-quarter GDP figures, due Monday, after a run of positive trade and credit numbers. The IMF on Thursday forecast slower Asian growth next year and warned of risks from an energy shock triggered by the Iran war, a potential reversal in the AI boom and knock-on effects from higher global bond yields.