Chinese technology stocks declined Monday amid supply concerns over major fundraising plans by Alibaba Group Holding Ltd. and Yangtze Memory Technologies Co. The Hang Seng Tech Index dropped as much as 4% after Alibaba raised HK$80 billion ($10.2 billion) in its largest secondary share sale in Hong Kong. Meanwhile, the mainland STAR 50 Index fell 3.8% to a three-week low after the Shanghai bourse accepted Yangtze Memory's application for a likely sizable initial public offering. Investors fear the dual offerings could drain liquidity and weigh on valuations across the sector.

Both companies are pivotal to China's semiconductor and cloud ambitions, making their capital moves a barometer for tech sentiment. The selloff underscores market sensitivity to supply-side pressures in a sector already navigating geopolitical and regulatory headwinds.