The Shanghai Composite Index fell 0.8% on Friday to 3,853, its lowest level in nearly four months, while the Shenzhen Component dropped 2.1% to 14,191, a more than three-month low. The declines came as sentiment toward China’s technology hardware sector turned increasingly bearish.
The STAR 50 Index’s fear/greed gauge, which tracks selling pressure relative to buying activity, slid to its lowest reading since April 2022. Investors grew wary of stretched valuations after a blockbuster quarter and a pullback in previously high-flying memory-chip stocks, further souring the mood.
At the same time, markets focused on the World AI Conference in Shanghai, where President Xi Jinping is expected to deliver a keynote speech underscoring China’s push for technological self-reliance and a greater role in shaping global AI standards.
Technology shares remained under sustained pressure, led by declines in Cambricon Technologies (-3%), Hygon Information Technology (-2.6%), Zhongji Innolight (-7.7%), Eoptolink Technology (-7.3%) and NAURA Technology (-2.3%).
