[China Stock Market Closing]Tech Stocks Slide 2–3% on AI Bubble Concerns

(Seoul=Yonhap Infomax) Kyung Pyo Hong – On the 21st, major Chinese stock indices closed lower, tracking a global sell-off in technology shares amid mounting concerns over an artificial intelligence (AI) bubble.

According to the Yonhap Infomax World Stock Index (screen number 6511), the Shanghai Composite Index ended the session at 3,834.89, down 96.16 points or 2.45% from the previous close.

The Shenzhen Composite Index finished at 2,370.32, a decline of 84.12 points or 3.43%.

Chinese equities faced continued risk-off sentiment as investors grew wary of elevated valuations in technology stocks.

Even Nvidia Corp.'s stronger-than-expected earnings failed to dispel concerns over an AI-driven market bubble.

Overnight, the Philadelphia Semiconductor Index, which tracks major U.S. AI and semiconductor stocks, plunged 4.77%.

This triggered a broad sell-off in tech shares across Asian markets, including South Korea and Japan, with Chinese stocks extending their losses.

Chinese technology stocks, which have surged sharply this year, are now under selling pressure as investors lock in profits.

The Shanghai Composite Index has risen approximately 18% year-to-date.

The CSI AI Index dropped as much as 3.5% intraday, while the CSI Semiconductor Index fell 3.1%.

Morgan Stanley noted, "Weaker risk appetite and recent disappointing economic data have dampened market sentiment heading into year-end."

Rising geopolitical tensions between China and Japan are also weighing on the market.

On November 7, Japanese Prime Minister Sanae Takaichi became the first sitting Japanese leader to suggest possible intervention in the event of a Taiwan contingency, prompting both countries to escalate their rhetoric and deepen their dispute.

Prime Minister Takaichi has stated she has no intention of retracting her remarks. In response, China has advised its citizens to refrain from traveling or studying in Japan, postponed the release of Japanese films, and suspended imports of Japanese seafood.

On this day, Prime Minister Takaichi reiterated that her views on the direction of China-Japan relations, as confirmed during last month's summit with Chinese President Xi Jinping in Gyeongju, remain unchanged.

She emphasized, "At the end of last month, President Xi and I reaffirmed our commitment to advancing a mutually beneficial strategic partnership and building a constructive and stable relationship. My position on this remains unchanged."

The People's Bank of China (PBOC) set the yuan stronger against the dollar. The central parity rate for USD/CNY was fixed at 7.0875, down 0.0030 yuan (0.04%) from the previous session.

kphong@yna.co.kr

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