China Stocks Slide in Sharp Reversal

The Shanghai Composite sank 1.15% to 3,832 while the Shenzhen Component fell 1.06% to 13,076 on Thursday, staging a steep reversal after both indexes touched fresh multi-year highs earlier in the day.

With no single catalyst behind the drop, profit-taking appeared to dominate as investors questioned the durability of the recent rally.

Markets have also been on edge this month amid reports that Beijing may move to curb speculation to shield retail investors from steep losses.

Separately, China’s cyberspace regulator reportedly ordered firms including Alibaba to halt purchases of Nvidia’s RTX Pro 6000D, a workstation chip adaptable for AI. Technology and new energy shares led the downturn, with heavy losses in East Money Information (-4.4%), Cambricon Technologies (-1.3%), Victory Giant (-3.1%) and Contemporary Amperex (-2.5%).