FX.co ★ China Stocks Drop for Third Session

The Shanghai Composite dropped by 1.2% to fall below the 3,770 mark, while the Shenzhen Component declined 2.2% to settle at 12,200 on Thursday. This marked the third consecutive day of losses, as shares in the artificial intelligence and semiconductor sectors faced significant selling pressure. These sectors had previously driven the Shanghai index to a ten-year high, but the market has since seen a reversal due to profit-taking and renewed worries about weak economic fundamentals. Investor sentiment was further weakened by geopolitical and trade tensions, as former US President Donald Trump continued to push for maintaining tariffs and intensified his rhetoric towards China. Among the biggest decliners were Zhongji Innolight, which fell by 10.4%, Eoptolink Technology, down by 13.2%, Cambricon Technologies, which lost 11.5%, Victory Giant, which decreased by 6%, and Foxconn Industrial, down by 4.4%.