07.11.202502:59:45UTC+00China Stocks Slip on Weak Global Cues

The Shanghai Composite Index saw a modest decline of 0.1% nearing the 4,000 mark, while the Shenzhen Component Index dropped by 0.2% to settle at 13,430 on Friday. This movement halted a two-day downward trend for mainland stocks. The broader pullback aligns with global market trends, driven by growing concerns about inflated valuations in the AI sector. Significant U.S. AI stocks, such as Nvidia, AMD, Palantir, Microsoft, and Broadcom, experienced considerable declines overnight. Similarly, in China, companies in the tech and AI sectors followed suit, with notable losses reported from Foxconn Industrial (down 3.9%), Zhongji Innolight (down 0.5%), Zhejiang Sanhua (down 2%), Eoptolink Technology (down 1.6%), and Cambricon Technologies (down 1.8%). In a strategic move, Chinese authorities have mandated that any new data center projects receiving state funding must solely implement domestically produced AI chips, underscoring China's ongoing commitment to achieving technological self-reliance. Investors are now turning their attention to China's upcoming October trade data, which will offer further insights into the economy's health ahead of crucial inflation statistics expected over the weekend.