FX.co ★ China Stocks Stall After Strong Rally

On Thursday, the Shanghai Composite index fell by 0.5% to reach 4,084, while the Shenzhen Component saw a decline of 0.15%, settling at 14,011. This dip marks a pause in the robust rally that had recently propelled these benchmark indexes to multi-year peaks. At the year's outset, Chinese equities outpaced others, driven by enthusiasm surrounding China's progress in artificial intelligence and other high-tech industries, alongside anticipated further policy support. Trading volumes at the beginning of the year far surpassed the five-year daily average of 1.13 trillion yuan, signifying strong investor involvement and suggesting potential for continued growth. The technology sector led the day's decline, with notable pullbacks from companies like Zhongji Innolight (-2.9%), Luxshare Precision (-3.7%), Eoptolink Technology (-1.9%), East Money Information (-2.1%), and Foxconn Industrial (-1.7%).