China Stocks Fall Amid Global Selloff
China's stock market experienced declines, with the Shanghai Composite falling 0.5% and the Shenzhen Component dropping 0.9%, amid a global selloff driven by concerns over inflated AI valuations. Tech and AI stocks were particularly affected, with significant losses reported for companies like Zhongji Innolight and GigaDevice Semiconductor. Additionally, a private survey indicated a slowdown in China's services sector growth. On a positive note, recent agreements between Presidents Xi Jinping and Donald Trump addressed key trade issues, including tariff reductions and export controls.
The Shanghai Composite fell 0.5% to around 3,940, while the Shenzhen Component lost 0.9% to 13,060 on Wednesday, extending declines from the previous session and tracking a global stock selloff s worries over inflated AI valuations deepened.
Sentiment weakened further after Wall Street bank CEOs warned that markets could face significant drawdowns.
Tech and AI-related Chinese stocks led the retreat, with notable losses in Zhongji Innolight (-2.3%), Eoptolink Technology (-1.9%), Foxconn Industrial (-2.7%), GigaDevice Semiconductor (-4%), and Cambricon Technologies (-1.5%).
Meanwhile, a private survey showed China’s services sector growth eased to a three-month low in October.
On the trade front, President Xi Jinping and US President Donald Trump recently reached agreements on key issues, including US tariff reductions, China’s suspension of rare earth export controls, and the halting of mutual investigations into strategic industries.
