The Shanghai Composite Index slid 2.2% to 3,944 on Monday, its lowest level in two months, while the Shenzhen Component Index lost 1.8% to 15,033, a more than one-month low. A broad selloff in technology shares weighed heavily on mainland markets, following a sharp pullback in US AI-related stocks after stronger-than-expected US employment data intensified concerns that interest rates could stay higher for longer.
Among the notable decliners were Zhongji Innolight (-7.8%), Eoptolink Technology (-3.6%), and NAURA Technology (-3.8%). Risk sentiment was further dampened by geopolitical tensions after Iran framed its latest missile launch as a warning to Israel over its operations in Lebanon, although Israeli defense systems reportedly intercepted all incoming projectiles.
On the domestic front, investors are now looking ahead to upcoming trade and inflation figures for new signals on the resilience of China’s economy, which continues to face both external and internal headwinds.
