05.02.202602:47:32UTC+00China Stocks Fall on Global Tech Rout

The Shanghai Composite Index declined by 0.9%, slipping below the 4,070 mark, while the Shenzhen Component Index fell by 1.4% to 13,955 on Thursday. This downturn halted a two-day market rally as global technology sector concerns negatively impacted investor sentiment. Apprehensions about high valuations, substantial investments in artificial intelligence, and potential threats to traditional software business models prompted investors to withdraw from tech stocks. Among the major decliners were Eoptolink Technology, losing 3.5%, BlueFocus Intelligent dropping 4.8%, Suzhou TFC Optical down by 7.6%, Leo Group declining 4.3%, and Cambricon Technologies retreating 2.6%. Companies linked to natural resources also experienced renewed selling pressure due to a decline in precious metal prices, leading to notable losses for Zijin Mining at 5.2%, Hunan Gold Corp at 9.9%, and CMOC Group at 6.3%. Additionally, clean energy stocks saw significant declines, including Goldwind Science, with a 7.9% decrease, Contemporary Amperex dropping 2%, and Sungrow Power falling by 4.8%.