China’s Shanghai and Shenzhen indexes fall to more-than-two-month lows amid technology losses
Updated
Summary
On Friday, the Shanghai Composite fell 1.5% to 3,602 and the Shenzhen Component dropped 2.1% to 11,118. Both reached their lowest levels in more than two months, with losses in semiconductor and technology stocks weighing on the market.
Why it matters
The decline mirrored broader losses across Asian markets after Wall Street fell overnight, amid concerns about the sustainability and potential returns of artificial-intelligence investments that pressured technology stocks.
In China’s AI sector, MiniMax Group Inc. and Z.AI Co. had lost a combined $150 billion in market value from their respective peaks amid intensifying competition and the prospect of rival listings. Notable market laggards included Cambricon Technologies (-3.7%), SMIC (-2.9%), Zhongji Innolight (-3.6%), Eoptolink Technology (-6.1%) and NAURA Technology (-1.9%).
What remains uncertain
Potential IPOs by DeepSeek and Moonshot AI could further divert investor capital from MiniMax and Zhipu, described as two of China’s few listed pure-play AI firms.