The Shanghai Composite slipped 1.1% to 4,076 on Friday, while the Shenzhen Component tumbled 1.6% to 16,093, with sharp selling pressure in tech stocks driving both benchmarks to retreat from their previous-session gains. While strong earnings and upbeat revenue outlook from Micron Technology had sparked a recent rally, that optimism quickly faded as investors grew wary of the massive costs and uncertain returns of AI. Notable Chinese tech laggards included Zhongji Innolight (-5.4%), Eoptolink Technology (-6.2%), Victory Giant Technology (-5.8%), and Hygon Information Technology (-2.7%). On the economic front, China’s fiscal spending rose 0.8% year-on-year to CNY 11.39 trillion ($1.59 trillion) in the first five months of 2026. Central government spending jumped 6.5% to CNY 1.68 trillion, while local spending dipped 0.1% to CNY 9.71 trillion. Over the week, the Shanghai Composite headed toward minor losses, while the Shenzhen Component looked set for a second straight weekly gain.

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