Chinese equities retreated on Thursday, with the Shanghai Composite Index falling 0.9% as investors sold off semiconductor stocks that had recently hit record highs.
The sharp pullback in the chip sector weighed heavily on mainland benchmarks, reversing some of the recent gains seen in technology-heavy indices.
In contrast, Hong Kong shares managed to stage a rebound, decoupling slightly from the mainland's downward pressure.
The divergence highlights the mixed sentiment across Asian markets, where profit-taking in overextended tech names is clashing with broader regional resilience.
The selloff follows a period of aggressive pricing strategies by major technology firms, which has raised concerns about dampening consumer demand.
Asian equity markets had previously pulled back from record highs on Friday, driven by worries that the tech-led rally was losing momentum.