China markets fall as tech stocks lead broad sell-off

Chinese stock markets ended lower on Friday, with the Shanghai Composite falling 2.26% and the Shenzhen Component dropping 3.44%, as heavy selling in technology stocks erased the previous day's gains. Although strong earnings and a positive outlook from Micron had briefly lifted investor sentiment, concerns over the high costs of artificial intelligence investments and uncertain returns weighed on the sector.

Among the biggest losers were Zhongji Innolight, Eoptolink Technology, Victory Giant Technology, and Hygon Information Technology.

On the economic front, China's fiscal spending rose 0.8% year-on-year to CNY 11.39 trillion in the first five months of 2026. Central government spending increased 6.5%, while local government spending edged down 0.1%.

For the week, both the Shanghai Composite and the Shenzhen Component declined 1.55%.

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