China Stocks Fall as Tech Sector Drags
The Shanghai Composite fell 0.3% to 3,721 on Tuesday, while the Shenzhen Component dropped 0.5% to a more than two-month low of 11,761, tracking broader losses across Asian markets and bucking a chip-led rally on Wall Street. Sentiment toward AI-related stocks remained fragile ahead of key earnings from major technology companies this week, as concerns over heavy AI spending and elevated interest rates have recently weighed on the sector. Cambricon Technologies (-1.5%), GigaDevice Semiconductor (-1.9%), Piotech (-1.8%), Zhongji Innolight (-1.5%) and Eoptolink Technology (-1.7%) posted losses. On the monetary policy front, the People’s Bank of China kept its one-year loan prime rate (LPR) unchanged at 3.0%, while the five-year LPR remained at 3.5%. The decision followed strong key economic data, with the GDP expanding 4.5% year-on-year in Q3, accelerating from the previous quarter and keeping China on track to meet the government’s full-year growth target.
The Shanghai Composite fell 0.3% to 3,721 on Tuesday, while the Shenzhen Component dropped 0.5% to a more than two-month low of 11,761, tracking broader losses across Asian markets and bucking a chip-led rally on Wall Street. Sentiment toward AI-related stocks remained fragile ahead of key earnings from major technology companies this week, as concerns over heavy AI spending and elevated interest rates have recently weighed on the sector. Cambricon Technologies (-1.5%), GigaDevice Semiconductor (-1.9%), Piotech (-1.8%), Zhongji Innolight (-1.5%) and Eoptolink Technology (-1.7%) posted losses.
On the monetary policy front, the People’s Bank of China kept its one-year loan prime rate (LPR) unchanged at 3.0%, while the five-year LPR remained at 3.5%. The decision followed strong key economic data, with the GDP expanding 4.5% year-on-year in Q3, accelerating from the previous quarter and keeping China on track to meet the government’s full-year growth target.