FX.co ★ China Stocks Drop on Tech Selloff

The Shanghai Composite Index decreased by 1.6% to approximately 3,870, while the Shenzhen Component Index experienced a 2.8% drop to 12,620 on Friday. This decline dragged Chinese mainland stocks to their lowest in several weeks, as shares related to technology and artificial intelligence in China mirrored a global market downturn. The selloff extended from Wall Street amid ongoing concerns about a potential AI bubble, compounded by stronger-than-expected employment growth figures in the US, which heightened anticipations that the Federal Reserve might refrain from lowering interest rates in December. Notable losers in the tech sector included companies such as Zhongji Innolight, down 3.3%; Eoptolink Technology, falling 5.1%; Shannon Semiconductor, dropping 12.2%; Foxconn Industrial, decreasing by 6.3%; and Victory Giant, which declined by 5%. Additionally, shares in the new energy sector saw continued losses, with firms like Sungrow Power, Contemporary Amperex, and Ganfeng Lithium experiencing declines ranging from 1.2% to 9.7%.