Jeanny Yu

The latest batch of earnings showed the impact of China’s intense food-delivery price competition is fading more quickly than expected, removing a major drag on sector stocks.

China’s AI developers have already lost billions in a bruising stock selloff, and a push by US developers to cut Chinese rivals off from frontier models threatens to add to the pain if it succeeds.

Shares of Chinese AI model developers fell after a report that the country’s regulators have opened a probe into startups DeepSeek and Moonshot AI over data security concerns.

Hong Kong’s stock benchmark led losses in Asia as trading resumed after a holiday, pressured by a surge in US yields and disappointment over China’s latest stimulus measures.

Hong Kong’s main technology stock benchmark is expanding its number of constituents to 50 from 30 in a major revamp to better represent the fast-growing artificial intelligence and robotics sectors.

Chinese shares will likely come under pressure upon their return from a week-long break, reflecting losses in the Hong Kong market and sluggish holiday spending.

The memory-chip sector is prone to “vicious” boom-and-bust cycles and the problem may only worsen as Chinese companies ramp up capacity, according to Cathie Wood of ARK Investment Management LLC.

MiniMax Group Inc. shares wiped out all of their gains since their January trading debut, as intense rivalry forces investors to reassess the Chinese artificial intelligence model developer.

There’s no end in sight for the brutal selloff in China’s artificial intelligence model developer stocks, with competition growing ever more heated and the threat of rival listings next year.

Pessimism has gripped Chinese stocks, with no end in sight for a deepening selloff as investors confront the realities of an economy that’s weak enough to erode corporate profits but not to trigger forceful new stimulus.