FX.co ★ China Stocks Slide in Sharp Reversal

On Thursday, the Shanghai Composite experienced a decline of 1.15%, settling at 3,832, while the Shenzhen Component dropped 1.06% to 13,076. This marked a significant downturn after both indices had reached new multi-year highs earlier the same day. Although there was no specific trigger for the decline, it seemed that profit-taking was prevalent as investors cast doubt on the sustainability of the recent rally. Additionally, market sentiment has been uneasy this month amid speculation that Beijing might implement measures to curb speculation and protect retail investors from substantial losses. In a separate development, China's cyberspace regulator reportedly instructed companies, including Alibaba, to cease purchasing Nvidia's RTX Pro 6000D, a chip designed for AI workstations. Technology and new energy sectors led the decline, with significant losses observed in companies such as East Money Information (-4.4%), Cambricon Technologies (-1.3%), Victory Giant (-3.1%), and Contemporary Amperex (-2.5%).