Mainland Chinese equities retreated on Thursday, with the Shanghai Composite index slipping 0.8% and the blue-chip CSI 300 losing 0.9%.
The sell-off was driven by weakness in the technology sector, as semiconductor stocks that had recently hit record highs faced sharp profit-taking.
The pullback in the chip sector weighed heavily on broader market sentiment, extending the regional tech rout.
In Hong Kong, the market showed more resilience, buoyed by gains in Alibaba Group.
The e-commerce giant's strength helped offset the broader regional tech weakness, preventing a deeper decline in the territory's benchmark index.
This divergence highlights the selective nature of the current market rotation, where large-cap internet names are finding support while hardware and semiconductor plays face pressure.