Chinese stocks slumped on Friday, extending this week’s losses, with investors citing a lack of fresh catalysts after a blistering rally.

The Hang Seng China Enterprises Index slid as much as 2.7%, headed for its steepest two-day drop since October 9. Technology shares bore the brunt of the selling after powering the market for most of the year. Xiaomi Corp. and Alibaba Group Holding Ltd. lost more than 3% each. Onshore, the CSI 300 Index slid 1.6%.

Bearish calls have also started to crop up, with BofA Securities warning this week of a “meaningful correction soon.” Morgan Stanley sees volatility ahead, noting that onshore investor sentiment has cooled. Selling by mainland investors, who have been a key support for Hong Kong stocks in recent months, added to the pressure on the market on Friday, with the HSCEI gauge trimming its year-to-date gain to 20%.

Profit-taking pressure is rising on Hong Kong-listed tech stocks following their earnings, Alvin Ngan, an analyst at Zhongtai Financial International Ltd., wrote in a note. “The valuation gap between Chinese and US tech stocks has significantly narrowed after a correction in US stocks.”

The Hang Seng Tech Index dropped more than 3% on Friday. Even with that, the gauge is about 26% higher for the year.

Tech earnings have been largely positive so far, but share reactions have been mixed as upbeat expectations were priced in. Xiaomi Corp. hiked its 2025 delivery target, while Tencent’s revenue rose a better-than-projected 11% in the final quarter and net income almost doubled.

Food delivery giant Meituan is due to report results Friday.

Mainland investors sold a net HK$1 billion ($129 million) of Hong Kong shares as of mid-day break on Friday, after withdrawing HK$ 4 billion on Thursday. It’s a worrying sign after a surge in Chinese buying via the exchange links with Hong Kong has helped prop up stocks this year.

Onshore investor sentiment has also dropped in the past week, reflected in lower trading volumes, Morgan Stanley strategists led by Laura Wang wrote in a note. They expect to see some volatility in the earnings season.

The coming week may offer investors some fresh cues as a spate of companies — including from some of China’s biggest banks and consumer firms — are due to report their results.