The Shanghai Composite Index dropped 0.5% to 4,089 on Thursday, erasing gains from the previous session, while the Shenzhen Component Index advanced 0.6% to a one-month high of 15,978, as investors awaited further signals from the Lujiazui Forum, which concludes today.
Among the key takeaways from the forum, the People’s Bank of China indicated it may shift to using the overnight policy rate as its main benchmark, bringing its monetary policy framework more in line with those of major global central banks. At the same time, Vice Premier He Lifeng said Beijing intends to roll out anti-sanctions measures in response to what he called unreasonable foreign restrictions.
Technology shares were mixed. Zhongji Innolight slipped 0.3% and Eoptolink Technology declined 1%, while NAURA Technology edged up 0.3%, Victory Giant gained 1.5%, and Hygon Technology added 0.6%. The divergence among AI-related names highlighted a developing pair-trade theme, with investors increasingly favoring companies viewed as front-runners in China’s AI race.
