China Stocks Fall on AI Selloff

The Shanghai Composite fell 0.4% to 3,872 on Monday, while the Shenzhen Component dropped 0.8% to 13,370, dragged lower by AI-related stocks. Sentiment toward the sector deteriorated after several major AI firms called for a slowdown in the technology's development, casting doubt on one of the main drivers of this year's market rally. Meanwhile, Chinese President Xi Jinping proposed establishing a BRICS open-source AI community to deepen cooperation in developing and deploying large language models, highlighting Beijing's push to expand its influence as global competition over AI governance intensifies. Among the biggest decliners were Cambricon Technologies (-2.7%), SMIC (-1.4%), Zhongji Innolight (-3.9%), and Victory Giant Technology (-2.6%). On the economic front, investors are looking ahead to a slate of key economic data this week, including house prices, fixed-asset investment, industrial output, retail sales, unemployment, and FDI figures.