04.02.202602:38:07UTC+00China Stocks Struggle as Tech Weighs

On Wednesday, the Shanghai Composite experienced a 0.3% increase, reaching approximately 4,080, while the Shenzhen Component declined by 0.5% to settle at 14,050. This indicated a mixed performance among mainland stocks, as technology and artificial intelligence (AI) stocks faced significant selling pressure. Investors shifted away from AI stocks due to concerns over substantial capital expenditures, compounded by the introduction of a new AI automation tool from Anthropic, which led to broader losses in software companies. This development particularly impacted legal and data service firms. In China, notable stocks that suffered declines included Zhongji Innolight, falling by 4.9%, Eoptolink Technology by 6.3%, and BlueFocus Intelligent by 6.6%. Conversely, shares in the defense and mining sectors rose for the second consecutive session, driven by gains in companies such as Addsino Co, which climbed 6.7%, China Spacesat with an increase of 2.7%, and Zijin Mining rising by 1%. On the macroeconomic front, a private survey highlighted an acceleration in the growth of the Chinese services sector, reaching a three-month high in January, bolstered by an increase in new orders and robust foreign demand.