The Shanghai Composite Index fell 1% on Tuesday to 3,761, its lowest level in nearly three months, while the Shenzhen Component Index declined 2.2% to 12,109, a more than one-year low. Both benchmarks extended the previous session’s losses as the technology selloff on Wall Street spilled over into Asian markets.
Sentiment toward artificial intelligence-related stocks has cooled, with higher borrowing costs prompting investors to reassess whether heavy capital expenditure in the sector can deliver adequate returns. Sector headwinds intensified further after reports that CXMT achieved key breakthroughs in high-density chip design, adding to competitive pressure.
Major tech hardware and semiconductor names retreated, including Zhongji Innolight (-6.6%), Eoptolink Technology (-6.1%), SMIC (-2.8%), Victory Giant Technology (-2.9%), and Cambricon Technologies (-1.7%). Investors are now looking ahead to upcoming quarterly earnings for guidance on profit margins and underlying demand conditions.