Chinese equity markets registered a significant decline on Friday, pressured by disposals in the technology sector that dampened investor confidence. The Shanghai Composite decreased 1.44% to conclude trading at 3,599, whereas the Shenzhen Component declined 2.73% to 10,834. Both benchmarks reached their lowest levels in over a year.
The technology sector faced continued headwinds amid discouraging projections and underwhelming performances from leading US corporations, notably Intel, Amazon, and Alphabet. Their disclosures fueled apprehensions regarding semiconductor demand and the potential for substantial returns on investments in artificial intelligence.
Several prominent Chinese technology companies experienced declines despite reporting robust earnings. Zhongji Innolight decreased 4.99% despite registering a 173.7% year-on-year surge in third-quarter net profit. Eoptolink Technology retreated 14.19%, notwithstanding a 61.15% increase in earnings. Cambricon Technologies shed 3.61%, while SMIC decreased 4.17% and Hygon Information Technology fell 8.44%.