02.02.202607:32:19UTC+00China Stocks Drop on Mining, Tech Rout

The Shanghai Composite Index fell by 2.48% to conclude at 4,016, while the Shenzhen Component Index decreased by 2.69% to 13,824 on Monday. This downturn pushed mainland Chinese stocks to their lowest levels in four weeks, primarily driven by significant declines in the mining and technology sectors. Mining stocks, in particular, experienced substantial selling pressure due to a continued decline in the prices of gold, silver, and other metals for the second consecutive day. Prominent companies facing notable losses included Zijin Mining, which declined by 8.8%, CMOC Group by 9.2%, Aluminum Corporation by 10%, Hunan Gold by 10%, and China Northern Rare Earth by 7.6%. The technology sector also saw a sharp decrease amid renewed concerns about the viability of AI investments, with significant losses recorded by Zhongji Innolight at 8.9%, BlueFocus Intelligent at 8.4%, and Suzhou TFC Optical at 4%. Concurrently, a private survey revealed an acceleration in Chinese factory expansion in the previous month, as manufacturers increased production and loaded cargo in anticipation of the extended Lunar New Year holiday.