Global Market: China stocks face steep weekly losses as CXMT IPO sparks liquidity crunch fears

Chinese blue-chip CSI300 index dropped 2.5% to a three-month low, while Shanghai Composite fell 1.6%, putting both benchmarks on track for their weakest weekly performance since late December 2024. AI and semiconductor stocks led the sell-off, with CSI AI and Integrated Circuits indices each plunging around 6%, amid liquidity concerns sparked by CXMT's $8.6 billion IPO and expectations of further blockbuster listings. Hong Kong's Hang Seng fell 2%, its biggest one-day decline in nearly four months, as renewed Iran-linked geopolitical tensions compounded selling pressure across Asian equities.