China Stocks Fall as Tech Rout Deepens
The Shanghai Composite fell 0.6% to 3,656 on Thursday, while the Shenzhen Component slumped 2.2% to 11,218, reversing gains from the previous session as technology stocks came under renewed pressure. Investors are awaiting earnings reports from Chinese technology hardware firms, including Zhongji Innolight and Victory Giant Technology, both due later Thursday. While Cambricon Technologies has already posted strong earnings, revenue fell short of expectations, while CXMT reported a disappointing preliminary profit. The sector has been among the hardest hit by the global retreat from AI-related trades, as investors question whether earnings potential can justify lofty valuations. Cambricon Technologies (-1.7%), SMIC (-2%), Hygon Information Technology (-2.7%), Zhongji Innolight (-5.4%) and Eoptolink Technology (-8%) all declined. Meanwhile, the Communist Party’s Fifth Plenum is set to end on Thursday, with investors looking for further clarity on policy direction and economic priorities.
The Shanghai Composite fell 0.6% to 3,656 on Thursday, while the Shenzhen Component slumped 2.2% to 11,218, reversing gains from the previous session as technology stocks came under renewed pressure. Investors are awaiting earnings reports from Chinese technology hardware firms, including Zhongji Innolight and Victory Giant Technology, both due later Thursday. While Cambricon Technologies has already posted strong earnings, revenue fell short of expectations, while CXMT reported a disappointing preliminary profit.
The sector has been among the hardest hit by the global retreat from AI-related trades, as investors question whether earnings potential can justify lofty valuations. Cambricon Technologies (-1.7%), SMIC (-2%), Hygon Information Technology (-2.7%), Zhongji Innolight (-5.4%) and Eoptolink Technology (-8%) all declined. Meanwhile, the Communist Party’s Fifth Plenum is set to end on Thursday, with investors looking for further clarity on policy direction and economic priorities.