China Stocks Retreat as Tech Rout Intensifies
The Shanghai Composite slipped 1.4% to 3,637 on Friday, while the Shenzhen Component slid 2% to 11,242, with both indexes snapping a two-session winning streak and tracking losses across Asian markets, weighed down by a significant selloff in the technology sector. While investors initially anticipated that a Democratic sweep of the US Congress would accelerate efforts to end the Iran war, those geopolitical expectations were overshadowed by growing concerns over potential regulatory headwinds for the AI and data center industries, which could cloud the funding outlook for data infrastructure. Eoptolink Technology and Zhongji Innolight cratered 12.5% and 12.3% respectively, while Cambricon Technologies dropped 5.8%, Hygon Information Technology lost 3.1%, and SMIC and NAURA Technology both declined 3.0%. Despite Friday’s sharp retreat, both indexes still managed to lock in overall gains for the week.
The Shanghai Composite slipped 1.4% to 3,637 on Friday, while the Shenzhen Component slid 2% to 11,242, with both indexes snapping a two-session winning streak and tracking losses across Asian markets, weighed down by a significant selloff in the technology sector. While investors initially anticipated that a Democratic sweep of the US Congress would accelerate efforts to end the Iran war, those geopolitical expectations were overshadowed by growing concerns over potential regulatory headwinds for the AI and data center industries, which could cloud the funding outlook for data infrastructure.
Eoptolink Technology and Zhongji Innolight cratered 12.5% and 12.3% respectively, while Cambricon Technologies dropped 5.8%, Hygon Information Technology lost 3.1%, and SMIC and NAURA Technology both declined 3.0%. Despite Friday’s sharp retreat, both indexes still managed to lock in overall gains for the week.