China stocks slip as tech weakness overshadows Fed rate decision

SHANGHAI, China – China stocks slipped on Thursday, October 29, as a deepening selloff in tech shares overshadowed the Federal Reserve’s decision to keep interest rates unchanged. At the midday break, the benchmark Shanghai Composite index lost 0. 9%, while the blue-chip CSI300 index . CSI300 fell 1. 2%. Tech shares were among the main drags, with the start-up board ChiNext Composite index falling 3. 6% and Shanghai’s tech-focused STAR50 index tumbling 4. 2%. CSI 5G communications, a gauge that measures the industry, plunged 6. 1% in morning deals.

Robot maker Yushu Technology, also known as Unitree, slumped 4. 3% after its third-quarter net profit fell despite revenue rising 70% from a year earlier in its first earnings report since listing. “Valuations for the tech AI hardware names are now close to the historical trough and imply a major deceleration in EPS growth ahead,” said James Wang, head of China strategy at UBS Investment Bank Research. “We are wary that investor sentiment on AI is fragile; however, we believe the risk-reward is looking more attractive again, and interest may come back towards the end of the year as investors rebuild their portfolios for the new year. ” Across the region,…