06.02.202607:22:00UTC+00China Stocks Fall as Tech Shares Weigh

The Shanghai Composite Index edged down by 0.25%, closing at 4,066, while the Shenzhen Component fell by 0.33% to end at 13,907 on Friday. This decline marked a continuation of losses for Chinese stocks into a second consecutive session, largely driven by a global selloff in technology shares. The tech sector downturn has been fueled by anxieties over extensive investments in artificial intelligence and the potential disruption of traditional software business models. Moreover, increased fluctuations in both metals and cryptocurrency markets have further suppressed investors' risk appetite. Significant declines were observed among Chinese tech stocks, with notable performances including Zhongji Innolight falling by 3.9%, Eoptolink Technology by 5%, BlueFocus Intelligent by 0.8%, Leo Group by 4.1%, and Cambricon Technologies by 2%. In other corporate developments, lackluster sales figures from BYD have provoked worries about future profitability within China’s electric vehicle sector, especially amid weakening domestic demand and escalating raw material costs. For the week, the Shanghai and Shenzhen indexes reported decreases of 1.27% and 2.11%, respectively.