Chinese Tech Stocks Enter Correction on Geopolitical Woes

China’s technology stocks entered into a technical correction as profit-taking and renewed geopolitical uncertainties weighed on sentiment.

The <-rte-company state="{"_id":"0000018f-cdd8-d495-a5cf-efda83560000","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">Hang Seng Tech Index, the gauge for Chinese technology stocks listed in Hong Kong, erased early gains to drop 1.7% on Friday. That takes declines from a May 20 high to more than 10%. <-bsp-bb-link state="{"bbHref":"bbg://securities/3690%20HK%20Equity","_id":"0000018f-cdd8-d495-a5cf-efda83560001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Meituan and <-bsp-bb-link state="{"bbHref":"bbg://securities/700%20HK%20Equity","_id":"0000018f-cdd8-d495-a5cf-efda83560002","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Tencent Holdings Ltd. were the biggest drags on the measure.

Chinese technology shares have powered a broad market rally in April thanks to a combination of earnings optimism, cheap valuation and policy support for the economy. But appetite for the sector has cooled as ...