20.10.202601:58:43UTC+00China Stocks Fall as Tech Sector Drags

The Shanghai Composite slipped 0.3% to 3,721 on Tuesday, while the Shenzhen Component lost 0.5% to 11,761, its lowest level in more than two months. The declines tracked broader weakness across Asian equity markets and contrasted with a chip-driven rally on Wall Street.

Sentiment toward AI-related stocks remained fragile ahead of key earnings reports from major technology firms this week, as worries over heavy AI investment and persistently high interest rates continued to pressure the sector. Shares of Cambricon Technologies (-1.5%), GigaDevice Semiconductor (-1.9%), Piotech (-1.8%), Zhongji Innolight (-1.5%), and Eoptolink Technology (-1.7%) all declined.

On the policy front, the People’s Bank of China left its one-year loan prime rate (LPR) unchanged at 3.0% and maintained the five-year LPR at 3.5%. The decision followed a run of solid macroeconomic data, including a 4.5% year-on-year expansion in GDP in the third quarter, an acceleration from the previous three-month period that keeps China on course to meet the government’s full-year growth target.