China Stocks Remain at Multi-Month Lows

The Shanghai Composite fell 0.4% to 3,799, its lowest level in more than two months, while the Shenzhen Component dropped 1.44% to a more than one-year low of 12,440 on Friday, as investors cautiously monitored China-EU trade talks set to conclude later in the day. European industry groups called for immediate action against unfair Chinese trade practices, warning of risks to EU manufacturing and further job losses. The talks follow three months of discussions over the EU’s goods trade deficit with China and Beijing’s restrictions on rare earth and other critical mineral exports. Tech stocks also weighed on sentiment after a report that OpenAI’s annualized revenue was $20 billion below previously indicated levels, fueling concerns about the sustainability of AI spending. Cambricon Technologies (-2.1%), SMIC (-2%), Zhongji Innolight (-2.7%), Eoptolink Technology (-3%) and NAURA Technology (-3%) were among the biggest decliners. For the week, both benchmarks were on track to end lower.