Chinese Tech Stocks Near Correction in Sharp Sentiment Reversal

Chinese technology stocks fell from a three-year high to the brink of a correction in just five sessions, fueled by a lack of positive surprise in earnings and Xiaomi Corp.’s jumbo share sale.

The Hang Seng Tech Index dropped 3.8% on Tuesday, extending its slide from a March 18 high to nearly 10%. Xiaomi, which raised $5.5 billion in an upsized placement, closed down 6.3%. Alibaba Group Holding Ltd. fell nearly 4% following its chairman’s warning on a potential bubble forming in datacenter construction.