The Shanghai Composite Index slipped 0.6% to 3,656 on Thursday, while the Shenzhen Component dropped 2.2% to 11,218, erasing gains from the previous session as technology shares came under renewed pressure. Investors are awaiting earnings from Chinese technology hardware makers, including Zhongji Innolight and Victory Giant Technology, both scheduled to report later on Thursday.
Cambricon Technologies has already delivered strong earnings, but its revenue missed forecasts, and CXMT released a weaker-than-expected preliminary profit update. The broader sector remains among the hardest hit by the global pullback from AI-related trades, as investors increasingly question whether future earnings can justify stretched valuations.
Shares of Cambricon Technologies fell 1.7%, SMIC declined 2%, Hygon Information Technology dropped 2.7%, Zhongji Innolight sank 5.4% and Eoptolink Technology tumbled 8%. Meanwhile, the Communist Party’s Fifth Plenum is scheduled to conclude on Thursday, with markets watching closely for greater clarity on policy direction and economic priorities.
