The Shanghai Composite Index declined 0.7% to 3,687 on Thursday, while the Shenzhen Component lost 1.1% to 11,573, its lowest level in more than two months. The weakness mirrored broader losses across Asian markets as the recent technology-driven rally showed signs of fatigue. That rally had been underpinned by strong earnings and renewed enthusiasm for artificial intelligence, but mixed quarterly results from major US tech firms have now cast doubt on the durability of this week’s rebound in the sector.
On the domestic front, state-directed buying has continued to tilt toward technology and growth stocks, underscoring Beijing’s push to bolster homegrown technological capabilities and to shore up equity-market financing. Despite this policy support, technology shares led Thursday’s declines, with notable drops in Zhongji Innolight (-2.6%), Eoptolink Technology (-4.9%) and Victory Giant Technology (-1.3%). Other prominent losers included China Merchants Bank (-1.1%), Foxconn Industrial Internet (-1.2%) and Ping An Insurance (-1.2%).
