The Shanghai Composite Index fell 1.26% to close at 4,082, while the Shenzhen Component declined 1.28% to 14,100 on Friday, trimming gains made earlier in the week as investors repositioned ahead of the week-long Lunar New Year holiday. Mainland Chinese markets will be closed from February 16 to 23.
Chinese equities tracked weakness in global markets amid ongoing concerns about the sustainability of elevated AI-related investment and the potential for disruption in certain sectors. At the same time, Premier Li Qiang on Wednesday called for a broad push in technological innovation and AI deployment, urging breakthroughs across the entire AI industry chain to unlock the sector’s growth potential.
Technology, clean energy, and mining shares led the downturn, with notable declines in BlueFocus Intelligent (-5.8%), Contemporary Amperex (-2.8%), and Zijin Mining (-5%). Looking ahead, investors are also watching a planned April meeting between President Xi Jinping and President Donald Trump, which may have significant implications for bilateral economic relations.
