The Shanghai Composite declined 0.4% to 3,872 on Monday, while the Shenzhen Component lost 0.8% to close at 13,370, weighed down by AI-related stocks. Sentiment toward the sector weakened after several major AI companies called for a slowdown in the technology’s development, casting doubt on one of the key drivers of this year’s market rally.
At the same time, Chinese President Xi Jinping proposed the creation of a BRICS open-source AI community to deepen cooperation in the development and deployment of large language models, underscoring Beijing’s efforts to expand its influence amid intensifying global competition over AI governance.
Notable decliners included Cambricon Technologies (-2.7%), SMIC (-1.4%), Zhongji Innolight (-3.9%), and Victory Giant Technology (-2.6%).
On the economic front, investors are awaiting a series of key data releases this week, including figures on house prices, fixed-asset investment, industrial output, retail sales, unemployment, and foreign direct investment (FDI).
