Chinese stocks fall as technology shares lose momentum

Chinese stocks fell on Thursday, with the Shanghai Composite declining 1.5% to close at 3,658, while the Shenzhen Component dropped 3% to 11,357, its lowest level in more than two months. The decline followed broader losses across Asian markets as the recent rally in technology stocks lost strength.

The recent rally was supported by strong corporate earnings and growing optimism about artificial intelligence. However, mixed results from US technology companies have raised concerns about whether the rebound can continue. This has weakened investor confidence in the technology sector.

Meanwhile, state-backed buying in China has increasingly focused on technology and growth stocks, as Beijing aims to strengthen domestic technology development and support funding through the stock market. Despite this support, technology shares came under heavy selling pressure.

Among the major losers, Zhongji Innolight fell 8.8%, Eoptolink Technology dropped 12.3%, and Victory Giant Technology declined 5.3%. Other notable losses included Foxconn Industrial Internet, down 3.6%, China Merchants Bank, down 1.1%, and Ping An Insurance, which slipped 0.5%.

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