The Shanghai Composite Index fell 0.6% to 3,836 on Tuesday, while the Shenzhen Component plunged 2.2% to 13,841, with both benchmarks giving back gains from the previous session as renewed selling hit semiconductor stocks. The sector came under pressure amid mounting investor doubts over whether large-scale AI-related capital spending will ultimately deliver adequate returns, dragging on chipmakers.
The pullback followed the blockbuster market debut of memory-chip producer CXMT, whose IPO had previously sparked a sharp rally in semiconductor names on the back of strong retail participation, appealing valuations, and ongoing state-backed support for equity markets.
Notable decliners included Cambricon Technologies (-2.7%), SMIC (-1.5%), GigaDevice Semiconductor (-7.5%), Zhongji Innolight (-7.1%), and Eoptolink Technology (-6.7%). Looking ahead, investors are now focused on the upcoming Politburo meeting later this week, where policymakers are widely expected to set out the economic policy priorities for the second half of the year.
