China Stocks Struggle as Tech Weighs
2026-02-04 02:38
By
Jam Kaimo Samonte
1 min. read
The Shanghai Composite rose 0.3% to around 4,080 while the Shenzhen Component fell 0.5% to 14,050 on Wednesday, with mainland stocks showing mixed performances as tech and AI stocks have come under heavy selling pressure.
Investors rotated out of AI names amid concerns over massive capital spending, and a new AI automation tool from Anthropic triggered broader losses in software companies, with legal and data services firms bearing the brunt.
Notable decliners in China included Zhongji Innolight (-4.9%), Eoptolink Technology (-6.3%), and BlueFocus Intelligent (-6.6%).
In contrast, defense and mining stocks climbed for a second session, led by Addsino Co (6.7%), China Spacesat (2.7%), and Zijin Mining (1%).
On the macro front, a private survey showed Chinese services sector growth accelerating to a three-month high in January, supported by rising new orders and strong foreign demand.