06.02.202602:55:06UTC+00China Stocks Head for Second Weekly Loss

On Friday, both the Shanghai Composite and Shenzhen Component indices faced difficulty in establishing a clear trend, although they appeared set for a second straight weekly decline. Investor sentiment was subdued due to a global selloff in technology stocks, sparked by concerns about substantial AI investments and the potential disruption of traditional software business models. Increased volatility in the metals and cryptocurrency markets also dampened risk appetite. Chinese tech stocks suffered, with Zhongji Innolight declining by 3.4%, Eoptolink Technology decreasing by 4%, and Leo Group dropping 2.4%. Conversely, shares related to resources saw a recovery as precious metals markets stabilized, highlighted by rises in Zijin Mining (0.5%), Hunan Gold Corp (10%), and Beijing Xiaocheng (8%). In corporate developments, BYD's underwhelming sales figures raised alarms about the profit forecast for China's electric vehicle industry, amid the challenges of slowing domestic demand and rising raw material costs.