The Shanghai Composite dropped 0.4% to around 3,360, while the Shenzhen Component fell 1% to 10,874 on Tuesday, extending losses from the previous session as technology stocks were hit by profit-taking and growing geopolitical concerns.
US-listed Chinese stocks, including Alibaba (-10.2%) and PDD Holdings (-8.8%), tumbled overnight after President Donald Trump instructed his administration to restrict Chinese investments in technology and other strategic sectors in the US. He also ordered an audit of foreign companies listed on US exchanges, including a review of their ownership structures.
Notable declines were seen in mainland stocks such as Talkweb Information (-1%), DHC Software (-4.2%), Beijing Enlight (-6.6%), Hangjin Technology (-4.6%), and ZTE Corp (-2.7%).
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