China Indexes Turned Lower In February as AI Euphoria Turns to Scare

Li Chen
27 Feb, 2026
Mumbai

Stocks in China and Hong Kong diverged as investors reacted to corporate news ahead of key parliamentary meetings next week. 

The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 Index decreased 0.7% amid growing worries about the AI-driven disruptions spreading beyond software, financial, and logistics industries. 

China's policymakers are set to debate industrial and economic policies, announce economic growth targets, and prioritize policy objectives for the 15th Five-Year Plan ending in 2030.

Chinese leaders have been emphasizing the need for policymakers to focus on slower economic growth, provide additional support for advanced technology, and promote international expansion. 

China's annual Two Sessions are scheduled to start on March 4 and are likely to end on March 11. 

 

China Indexes and Stocks 

The Hang Seng Index increased 0.8% to 26,578.03, and the mainland-focused CSI 300 Index decreased 0.7% to 4,693.20. 

The persistent fears of AI-related disruptions dragged down the Hang Seng Index by 3.2% in February, the worst monthly decline since October. 

Global investors have been in sell-mode amid uncertainties linked to the rapid deployment of artificial infrastructure and potential disruptions to business models in software, logistics, and wealth management. 

Metals and mining stocks led gainers for the second week in a row in Shanghai and Hong Kong. 

Inner Mongolian BaoTou Steel jumped 9% to 3.25 yuan, China Northern Rare Earth Group gained 4.2% to 62.62 yuan, and Beijing TeamSun Technology gained 7.5% to 29.41 yuan. 

Semiconductor-related stocks led gainers after a muted reaction to strong earnings from AI leader Nvidia. 

Eoptolink Technology decreased 6.7% to 360.00 yuan, Victory Giant fell 3.9% to 303.12 yuan, and Zhongji Innologht dropped 6.2% to 536.54 yuan.