The Shanghai Composite slipped 0.1% to 3,921 on Friday, while the Shenzhen Component added 0.4% to 14,345, leaving Chinese equities set for a mixed weekly close as investors assessed new US trade actions against China’s technology sector. Washington announced a 100% tariff on drone imports and related components, with smaller drones deemed to pose lower security risks facing a 25% levy instead. The move is expected to weigh on China’s drone industry, where Shenzhen-based DJI Technologies controls roughly 70% of the US commercial drone market.
Downside in the broader market was limited by gains in technology and chipmakers after Semiconductor Manufacturing International Corp. (SMIC) reported that its second-quarter profit more than tripled from a year earlier, handily beating forecasts on the back of strong demand for AI-related semiconductors. SMIC rose 3.5%, GigaDevice Semiconductor advanced 3.6%, Cambricon Technologies gained 1.3%, Zhongji Innolight climbed 1.0%, and Eoptolink Technology added 1.3%.
