China Stocks Snap 2-Session Gains
2026-08-06 01:57
By
Czyrill Jean Coloma
1 min. read
The Shanghai Composite fell 0.2% to 3,870 on Thursday, while the Shenzhen Component dropped 0.6% to 14,053, snapping a two-session winning streak as a rally in technology and semiconductor stocks lost momentum.
Investors took profits and reassessed valuations after AI-related shares rebounded sharply from last month's selloff, which triggered significant losses for several hedge funds.
Leading decliners included Cambricon Technologies (-3.0%), SMIC (-2.8%), Hygon Information Technology (-1.9%), Zhongji Innolight (-4.9%), Eoptolink Technology (-2.7%), and NAURA Technology (-2.3%).
Meanwhile, investors continued to monitor developments in the Middle East after Iran said it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, raising hopes for the eventual reopening of the strategic waterway.
Domestically, markets are awaiting China's upcoming trade data for further insight into the resilience of external demand and the broader economic outlook.