The Shangai Composite Index Closes 2.01% Lower

The Shangai Composite Index dropped 84 points or 2.01 percent on Thursday to close at 4079 points. Losses were led by Datang Intl (-5.70%), China Fortune (-5.22%) and Yonyou Soft (-4.81%).

The Shanghai Composite slid 2.04% to close at 4,077 on Thursday, while the Shenzhen Component tumbled 2.07% to 15,247, with both benchmarks erasing earlier gains and falling to their lowest levels in three weeks, dragged down by heavy selling in technology stocks. Cambricon Technologies dropped 3.19%, Zhongji Innolight plunged 4.21%, Eoptolink Technology lost 3.74%, and Huagong Tech sank 5.79% as investors locked in profits following the recent Nvidia-driven rally. Meanwhile, geopolitical concerns eased after President Donald Trump said negotiations with Iran were in the “final stages,” helping temper fears of energy-driven inflationary pressures. Separately, Chinese President Xi Jinping is reportedly preparing to visit North Korea as early as next week in his first trip there in seven years, highlighting warming ties between the longtime allies following the recent resumption of cross-border rail and air services.

The Shangai Composite Index decreased 4 points or 0.10 percent on Wednesday to close at 4165 points. The decline was led by Datang Intl (-10.02%), Zhejiang Zheneng (-10.00%) and Huaneng (-4.60%). On the upside, the strongest performers were China Fortune (3.60%), Aluminum Corporation of China (2.62%) and China Merchants Securities (1.67%).