Hong Kong shares extended losses.

At the midday break, the Shanghai Composite index added 0.07% to 3,803.08 points, after recording its worst day since April 2025 yesterday.

The blue-chip CSI300 index gained 0.69%.

Semiconductor stocks led gains, with the sub-index tracking the sector jumping 4.1%.

Tech stocks in China outperformed after GF Fund Management lifted investment curbs on a tech-focused feeder fund just a day after imposing them.

Yesterday, the fund house set a daily purchase cap of ¥100 (US$13.98) on the feeder fund for the GF Star Growth Index ETF, triggering market risk concerns and contributing to Shanghai’s biggest fall in nearly five months.

Shanghai’s tech-focused STAR Market jumped roughly 5% to a more than 3-1/2-year high before notching a 3.7% rise at midday.

China’s stock market is on a tear, fuelled by state money and big institutions, with analysts saying the absence of retail investor euphoria suggests the rally could be more sustainable despite a sluggish economic recovery.

“Investors will shift focus to the fourth Plenum in October, which is expected to discuss the 15th five-year plan and anchor policy expectations,” traders and analysts said.

Hong Kong’s benchmark Hang Seng Index fell 0.66% to 25,035.78 points, while the Hang Seng China Enterprises Index lost 0.86%.

Losses in Hong Kong were led by China’s leading food delivery group Meituan, which posted an 89% drop in second-quarter adjusted net profit on rising competition in the instant retail sector.