The Shanghai Composite slipped 0.2% to 3,870 on Thursday, while the Shenzhen Component declined 0.6% to 14,053, ending a two-session winning streak as the recent rally in technology and semiconductor stocks lost steam. Investors locked in profits and reassessed valuations after AI-related shares rebounded sharply from last month’s selloff, which had inflicted heavy losses on several hedge funds.
Notable decliners included Cambricon Technologies (-3.0%), SMIC (-2.8%), Hygon Information Technology (-1.9%), Zhongji Innolight (-4.9%), Eoptolink Technology (-2.7%), and NAURA Technology (-2.3%).
At the same time, investors kept a close eye on geopolitical developments in the Middle East after Iran said it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, lifting hopes for an eventual reopening of the strategic waterway. On the domestic front, markets are awaiting China’s upcoming trade data for further clues on the resilience of external demand and the broader economic outlook.
