Margin Access Cut Sparks Slide in China’s Expensive Chip Shares

High-flying Chinese chipmaker stocks tumbled Friday as mounting concerns over lofty valuations and reported margin cuts soured investor sentiment.

Shares of Semiconductor Manufacturing International Corp. fell as much as 8.2% in Hong Kong, while peer Hua Hong Semiconductor Ltd. slid 6.6%. Cambricon Technologies Corp. dropped 6.4% in Shanghai. The sector was among worst drags on the onshore benchmark CSI 300 Index, which closed down 2% with an additional drag from losses in EV battery stocks.