China stocks fall as investors continue to sell technology shares

China's stock markets ended lower on Thursday as investors continued to sell technology stocks and move into safer sectors. The Shanghai Composite fell 0.62% to 3,804.7, while the Shenzhen Component dropped 2.73% to 13,285.8, its lowest closing level since December 2025.

Technology stocks remained under pressure as investors worried that recent gains had pushed valuations too high. As a result, money flowed into consumer, property, and high-dividend stocks, which were seen as more defensive. Shares of major tech and optical transceiver companies, including Cambricon Technologies, SMIC, Zhongji Innolight, Eoptolink Technology, and NAURA Technology, posted sharp losses.

The selling continued despite Zhongji Innolight's successful Hong Kong listing, where the company raised HK$53.4 billion ($6.8 billion) in the city's biggest initial public offering in seven years. Investors remained cautious about the sector despite the strong fundraising.

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