The Shangai Composite Index Closes 2.23% Lower

The Shangai Composite Index fell 92 points or 2.23 percent on Friday to close at 4028 points. Leading the losses are BAIC BluePark (-5.37%), New China Life (-5.23%) and China Pacific Insu (-5.15%).

The Shanghai Composite slipped 2.26% to close at a two-week low of 4,027 on Friday, while the Shenzhen Component tumbled 3.44% to 15,782, with sharp selling pressure in tech stocks driving both benchmarks to retreat from their previous session gains. While strong earnings and an upbeat revenue outlook from Micron Technology had sparked a recent rally, that optimism quickly faded as investors grew wary of the massive costs and uncertain returns of AI. Notable Chinese tech laggards included Zhongji Innolight (-5.25%), Eoptolink Technology (-7.29%), Victory Giant Technology (-8.74%), and Hygon Information Technology (-4.27%). On the economic front, China’s fiscal spending rose 0.8% year-on-year to CNY 11.39 trillion ($1.59 trillion) in the first five months of 2026. Central government spending jumped 6.5% to CNY 1.68 trillion, while local government spending fell 0.1% to CNY 9.71 trillion. Over the week, the Shanghai Composite and the Shenzhen Component each lost 1.55%.

The Shangai Composite Index gained 12 points or 0.30 percent on Thursday to close at 4123 points. Gains were led by China Eastern Airlin (6.96%), Air China (6.50%) and CITIC Securities (3.76%). Biggest losers were Zijin Mining (-6.44%), China Fortune (-4.92%) and China Molybdenum (-4.90%).