JKB Financial Services Ltd.

As on : 02-Jul-2026

Market Commentary - Foreign Markets
02-Jul-2026 15:39

China stocks fall as technology shares lead market lower

Chinese stock markets ended sharply lower on Thursday, with technology shares leading the decline. The Shanghai Composite dropped 2.03% to close at 4,029, snapping a three-day winning streak, while the Shenzhen Component fell 3.85% to 15,499, extending losses from the previous session.

Investor sentiment weakened as markets reassessed the recent rally in artificial intelligence-related stocks, with concerns that share prices had risen too quickly. Technology stocks also came under pressure after reports that Apple is considering sourcing memory chips from Chinese manufacturers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co. (YMTC). The move could face scrutiny from US policymakers due to ongoing technology tensions between the US and China.

Among the biggest losers in the technology sector were Cambricon Technologies (-7.63%), SMIC (-6.72%), Hygon Information Technology (-7.89%), Zhongji Innolight (-6.55%), Eoptolink Technology (-11.56%), NAURA Technology (-10.00%) and Victory Giant Technology (-6.35%), reflecting broad-based weakness across the sector.

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