China Stocks Track Asian Peers Lower
The Shanghai Composite fell 0.7% to 3,687 on Thursday, while the Shenzhen Component dropped 1.1% to a more than two-month low of 11,573, tracking broader Asian market losses as the technology-led rally lost momentum. The rally had been supported by strong earnings and renewed optimism surrounding artificial intelligence, but mixed results from US technology companies have raised doubts about the sustainability of this week’s rebound in the sector. Domestically, state-backed purchases have increasingly shifted toward technology and growth stocks, reflecting Beijing’s efforts to strengthen domestic technological capabilities and support equity-market financing. Technology stocks led the declines, particularly Zhongji Innolight (-2.6%), Eoptolink Technology (-4.9%) and Victory Giant Technology (-1.3%). Other decliners included China Merchants Bank (-1.1%), Foxconn Industrial Internet (-1.2%) and Ping An Insurance (-1.2%).
The Shanghai Composite fell 0.7% to 3,687 on Thursday, while the Shenzhen Component dropped 1.1% to a more than two-month low of 11,573, tracking broader Asian market losses as the technology-led rally lost momentum. The rally had been supported by strong earnings and renewed optimism surrounding artificial intelligence, but mixed results from US technology companies have raised doubts about the sustainability of this week’s rebound in the sector. Domestically, state-backed purchases have increasingly shifted toward technology and growth stocks, reflecting Beijing’s efforts to strengthen domestic technological capabilities and support equity-market financing.
Technology stocks led the declines, particularly Zhongji Innolight (-2.6%), Eoptolink Technology (-4.9%) and Victory Giant Technology (-1.3%). Other decliners included China Merchants Bank (-1.1%), Foxconn Industrial Internet (-1.2%) and Ping An Insurance (-1.2%).