06.11.202602:09:14UTC+00China Stocks Retreat as Tech Rout Intensifies

The Shanghai Composite fell 1.4% to 3,637 on Friday and the Shenzhen Component dropped 2% to 11,242, with both indices ending a two-session winning streak and mirroring broad losses across Asian markets. The downturn was led by a sharp selloff in technology shares. Investors had initially expected that a Democratic sweep in the US Congress would speed efforts to end the Iran war, but those geopolitical hopes were eclipsed by mounting worries over potential regulatory headwinds facing the AI and data center sectors, which could cloud funding prospects for data infrastructure.

Among major decliners, Eoptolink Technology and Zhongji Innolight plunged 12.5% and 12.3%, respectively. Cambricon Technologies shed 5.8%, Hygon Information Technology dropped 3.1%, and both SMIC and NAURA Technology retreated 3.0%. Despite Friday’s sharp pullback, the two benchmarks still posted overall gains for the week.