China Stocks Slide on Broad Tech Selloff

The Shanghai Composite slipped 1.4% to 4,054 on Thursday, snapping a three-day winning streak, while the Shenzhen Component tumbled 2.7% to 15,678, extending losses from the previous session. Both benchmarks were pressured by a broad selloff in technology stocks as investors reassessed the sustainability of the recent AI-driven rally amid concerns that valuations had risen too quickly. Sentiment was also weighed down by reports that Apple is in talks to source memory chips from Chinese manufacturers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co. (YMTC), a move that could attract scrutiny from US policymakers amid heightened tensions between Washington and Beijing over advanced technology. Among the worst-performing technology stocks were Cambricon Technologies (-6.9%), SMIC (-2.7%), Hygon Information Technology (-5.5%), Zhongji Innolight (-3.7%), Eoptolink Technology (-5.2%), and Victory Giant Technology (-5.7%).

The Shangai Composite Index went up by 18 points or 0.45 percent on Wednesday to close at 4113 points. The rise was led by Datang Intl (10.03%), Yonghui Superstore (9.86%) and New China Life (9.47%). On the downside, the weakerst performers were Sanan Optoelectron (-7.02%), Avic Aviation Engine (-1.62%) and Bank Of China (-1.40%).

The Shanghai Composite rose 0.44% to close at 4,112 on Wednesday, while the Shenzhen Component slipped 0.53% to 16,119, as concerns over uneven economic growth weighed on market sentiment. Goldman Sachs said discussions with Chinese investors revealed increasing caution over the country's near-term growth outlook, citing a more uneven recovery marked by weak consumer confidence, labor market pressures, and the ongoing property downturn. Meanwhile, President Xi Jinping pledged to steadily promote "high-quality development," emphasizing sustainable, innovation-driven growth. On the economic front, a private survey showed China's Manufacturing PMI eased to a three-month low of 51.7 in June from 51.8 in May. Notable gainers included China Merchants Bank (1.15%), China Life Insurance (9.7%), and Ping An Insurance (3.75%). In contrast, Sungrow Power Supply slumped 13.9% amid reports that US regulators are preparing restrictions on its imports over perceived national security concerns.