China Stocks Head for Second Straight Weekly Loss

Chinese equities struggled to find direction on Friday, with both the Shanghai Composite and the Shenzhen Component on track to post a second consecutive weekly decline, as global risk sentiment remained under pressure.

Investor confidence was weighed down by a broad global selloff in technology stocks, driven by concerns over heavy spending on artificial intelligence and the potential disruption of traditional enterprise software business models. Heightened volatility in metals and cryptocurrencies further dampened risk appetite.

China’s technology shares were among the hardest hit. Zhongji Innolight fell 3.4%, Eoptolink Technology slid 4.0%, and Leo Group declined 2.4%.

In contrast, resource-related stocks outperformed as precious metal prices stabilized. Zijin Mining gained 0.5%, while Hunan Gold Corp surged 10% and Beijing Xiaocheng jumped 8%.

On the corporate front, disappointing sales data from BYD raised fresh concerns over profit prospects in China’s electric vehicle sector, amid slowing domestic demand and rising raw material costs, adding to broader market caution.