The Shangai Composite Index Closes 1.19% Lower

The Shangai Composite Index fell 44 points or 1.19 percent on Friday to close at 3646 points. Leading the losses are Zijin Mining (-5.05%), China Molybdenum (-5.00%) and Yonyou Soft (-4.05%).

The Shanghai Composite slipped 1.10% to close at 3,649.2 on Friday, while the Shenzhen Component slid 2.57% to 11,175.8, with both indexes snapping a two-session winning streak and tracking losses across Asian markets, weighed down by a significant selloff in the technology sector. While investors initially anticipated that a Democratic sweep of the US Congress would accelerate efforts to end the Iran war, those geopolitical expectations were overshadowed by growing concerns over potential regulatory headwinds for the AI and data center industries, which could cloud the funding outlook for data infrastructure. Eoptolink Technology and Zhongji Innolight cratered 7.28% and 9.19%, respectively, while Cambricon Technologies dropped 4.98% and Hygon Information Technology lost 1.71%. Despite Friday’s sharp retreat, the Shanghai Composite gained 1.39% for the week, while the Shenzhen Component climbed 3.16%, with both indexes ending a six-week losing streak.

The Shangai Composite Index gained 0.7 points or 0.02 percent on Thursday to close at 3687 points. Gains were led by Yonyou Soft (4.23%), Hengli Petrochemical (4.12%) and LONGi Green (3.92%). Biggest losers were Petrochina (-8.15%), China Coal (-6.66%) and China Shenhua Engy (-6.41%).