The Shanghai Composite slipped 0.4% to 3,799 on Friday, its lowest close in more than two months, while the Shenzhen Component lost 1.44% to 12,440, a more than one-year low. The declines came as investors closely tracked China-EU trade talks scheduled to conclude later in the day.
European industry groups have urged swift action against what they describe as unfair Chinese trade practices, warning of potential damage to EU manufacturing and the risk of further job losses. The negotiations cap three months of discussions focused on the EU’s goods trade deficit with China and Beijing’s curbs on exports of rare earths and other critical minerals.
Sentiment was further pressured by weakness in technology shares after a report that OpenAI’s annualized revenue was $20 billion below previously signaled levels, stoking doubts about the durability of current AI-related spending. Among the notable losers were Cambricon Technologies (-2.1%), SMIC (-2%), Zhongji Innolight (-2.7%), Eoptolink Technology (-3%), and NAURA Technology (-3%).
Both major Chinese benchmarks were on course to end the week lower.
