Chinese shares opened lower on Thursday as technology sector weakness dampened investor sentiment.
The Shanghai Composite Index, the main gauge of Chinese stocks, opened 0.4% lower to 3,864.27. The Shenzhen Component Index fell 1.2% to 13,981.44.
The selloff in tech stocks stemmed from reports that the U.S. is drafting regulations to ban imports of Chinese-made next-generation optical transceivers, citing national security concerns. China's Foreign Ministry firmly opposed the move, saying that protectionism will not make the U.S. more competitive, Global Times reported.
Also affecting sentiment were rising concerns about AI spending after SpaceX reported a surge in capital spending in its first quarterly results as a public company, RTT News reported.