Chinese markets fall sharply as technology stocks extend losses

Chinese stock markets ended sharply lower on Friday, as selling pressure in technology stocks weighed on investor sentiment. The Shanghai Composite fell 1.44% to close at 3,599, while the Shenzhen Component dropped 2.73% to 10,834. Both indices touched their lowest levels in more than a year.

The technology sector remained under pressure following weak outlooks and disappointing results from major US companies, including Intel, Amazon and Alphabet. Their updates raised concerns about semiconductor demand and whether heavy investments in artificial intelligence will generate sufficient returns.

Several major Chinese technology stocks also declined despite reporting strong earnings. Zhongji Innolight fell 4.99% even after posting a 173.7% year-on-year rise in third-quarter net profit. Eoptolink Technology dropped 14.19%, despite a 61.15% increase in earnings. Cambricon Technologies lost 3.61%, while SMIC fell 4.17% and Hygon Information Technology declined 8.44%.

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