The Shanghai Composite inched up 0.1% to 3,833 on Thursday, while the Shenzhen Component dropped 1.1% to 13,502, as investors turned cautious ahead of the closely watched Politburo meeting later this week. The gathering is expected to set the policy tone for the remainder of the year, with markets seeking fresh signals on stimulus measures to support growth.
The cautious mood followed weaker-than-expected Q2 GDP data, dragged down by soft domestic demand, subdued private-sector investment, and a prolonged downturn in the property market.
Tech and AI-related shares led the selloff, with notable declines in Cambricon Technologies (-3.7%), SMIC (-1.7%), Zhongji Innolight (-4.8%), and Eoptolink Technology (-5%). Sentiment in the sector remained under pressure as the correction in China’s AI space deepened amid concerns over stretched valuations and heavy capital expenditure.
The weakness persisted despite Zhongji Innolight’s Hong Kong debut following its HK$53.4 billion ($6.8 billion) IPO, the city’s largest listing in seven years.
