China stocks fall as tech shares drag the market lower

Chinese stocks ended lower on Thursday, with the Shanghai Composite falling 1.85% to 3,882.4 and the Shenzhen Component losing 1.97% to 14,488.7. Both indices closed at their lowest levels in more than three months as heavy selling in technology stocks weighed on market sentiment.

Investors turned cautious amid concerns that strong earnings growth may not be enough to support the sector's high valuations. Chipmakers and technology companies such as Cambricon Technologies, SMIC, Zhongji Innolight, Eoptolink Technology, and NAURA Technology were among the biggest losers.

Market sentiment was also hurt by weaker economic data, which showed China's GDP grew at its slowest pace since the fourth quarter of 2022 and missed the government's 2026 growth target of 4.5% to 5.0%. In response, the People's Bank of China said it would step up policy support in the second half of the year, with the flexibility to use measures such as reserve requirement ratio (RRR) cuts and reverse repos while keeping the seven-day reverse repo rate as its main policy benchmark.

Powered by Capital Market - Live News