Chinese shares closed lower on Thursday amid a global selloff of chip and semiconductor stocks..
The Shanghai Composite Index, the main gauge of Chinese stocks, closed 2.0% lower to 4,028.90. The Shenzhen Component Index fell 3.9% to 15,498.81.
The semiconductor-driven downturn that originated on Wall Street spread into the Chinese tech market, with the SSE STAR 50 Index (SSE:000688), the benchmark for the 50 largest science and technology companies on the Shanghai bourse, falling 8%.
The overseas selling pressure likely stems from an unwinding of overcrowded positions in the AI hardware segment, Jiemian News reported. Earlier market enthusiasm over AI had fueled excessive speculation, and the current pullback reflects a broader shift toward risk-off behavior, with AI-related stocks bearing the brunt of the selloff.
Meanwhile, a finance ministry official said China will strengthen cooperation with the World Bank on global challenges, with greater emphasis on knowledge-sharing. While advancing domestic high-quality development, Beijing will support developing countries' common prosperity, the official added.
In company news, Far East Smarter Energy (SHA:600869) and its subsidiaries won contracts worth a total of 1.73 billion yuan in June. Shares of the wire and cable manufacturer fell 8% Thursday.