Chinese Tech Stocks Enter Correction on Geopolitical Woes

China’s technology stocks entered into a technical correction as profit-taking and renewed geopolitical uncertainties weighed on sentiment.

The Hang Seng Tech Index, the gauge for Chinese technology stocks listed in Hong Kong, erased early gains to drop 1.7% on Friday. That takes declines from a May 20 high to more than 10%. Meituan and Tencent Holdings Ltd. were the biggest drags on the measure.

Chinese technology shares have powered a broad market rally in April thanks to a combination of earnings optimism, cheap valuation and policy support for the economy. But appetite for the sector has cooled as ...