China stocks fall sharply as IPO worries weigh on tech shares

Chinese stocks ended sharply lower on Friday, with the Shanghai Composite falling 3.05% to an almost 11-month low and the Shenzhen Component dropping 5.4% to its weakest level in more than three months.

Investors grew concerned that a series of large upcoming IPOs, led by chipmaker CXMT's planned $8.6 billion listing, could pull money away from the broader market. Expectations of more mega listings, including Unitree and Yangtze Memory Technologies, added to concerns, especially as AI-related stocks were already trading at high valuations.

Meanwhile, President Xi Jinping, speaking at the World AI Conference in Shanghai, highlighted China's progress in affordable AI and called for greater global cooperation in technology. Technology shares came under heavy selling pressure, with major chip and AI-related companies posting steep losses. For the week, the Shanghai Composite fell 5.81%, while the Shenzhen Component dropped 8.9%.

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