The Shanghai Composite slipped 1.4% to 4,054 on Thursday, snapping a three-day winning streak, while the Shenzhen Component tumbled 2.7% to 15,678, extending losses from the previous session. Both benchmarks were pressured by a broad selloff in technology stocks as investors reassessed the sustainability of the recent AI-driven rally amid concerns that valuations had risen too quickly. Sentiment was also weighed down by reports that Apple is in talks to source memory chips from Chinese manufacturers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co. (YMTC), a move that could attract scrutiny from US policymakers amid heightened tensions between Washington and Beijing over advanced technology. Among the worst-performing technology stocks were Cambricon Technologies (-6.9%), SMIC (-2.7%), Hygon Information Technology (-5.5%), Zhongji Innolight (-3.7%), Eoptolink Technology (-5.2%), and Victory Giant Technology (-5.7%).

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