China's stock markets suffer volatility as uncertainty of AI, semiconductor sectors emerges: analyst

The uncertainty of Chinese AI and semiconductor industries has led to volatility in China's stock markets this week, said China Global Television Network (CGTN) analyst Timothy Pope on Friday.

The benchmark Shanghai Composite Index was down 1.61 percent to 3,814.20 points on the day.

The Shenzhen Component Index closed 2.47 percent lower at 13,774.68 points, while ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 2.65 percent to close at 3,480.87 points.

"It was a volatile week for the Chinese mainland markets, particularly for technology stocks. We saw some very strong gains in the middle of the week, but today brought a reality check for AI and semiconductor shares. The Shanghai Composite Index fell 1.6 percent by the close today, although it still finished 1.3 percent above last Friday's close. The Shenzhen Component and ChiNext also fell sharply today but remained higher over the week," said Pope.

Friday's drop, according to Pope, was due to the profit-taking from the tech-related industries.

"By Tuesday, AI stocks were looking a bit oversold following last week's rout. We saw new Chinese model releases like Kimi K3 also causing a bit of a stir, restoring some longer-term confidence in the sector's viability. And in fact, demand for some of those models was strong enough for developers to suspend new subscriptions while they expanded their computing capacity at the back end. But this week's trading also really illustrates the uncertainty surrounding the valuations of Chinese AI and semiconductor companies. Many of them are trading at demanding multiples of their expected earnings, but technology, of course, remains the main engine of the current market rally. And that is creating quite a short cycle of news-driven gains, followed then very quickly by profit-taking," the analyst said.

China's stock markets suffer volatility as uncertainty of AI, semiconductor sectors emerges: analyst

China's stock markets suffer volatility as uncertainty of AI, semiconductor sectors emerges: analyst

Chinese Vice President Han Zheng met with Serbian Deputy Prime Minister and Minister of Economy Adrijana Mesarovic on Monday, who is in China to attend the 26th China International Fair for Investment and Trade (CIFIT) in Xiamen City, east China's Fujian Province.

Noting that this year marks the 10th anniversary of the establishment of the China-Serbia comprehensive strategic partnership, Han said that bilateral relations have achieved leapfrog development over recent years under the strategic guidance of the two heads of state. In May this year, Chinese President Xi Jinping met again with Serbian President Aleksandar Vucic, charting the course for building a China-Serbia community with a shared future in the new era.

China is prepared to join hands with Serbia in implementing the important consensus of the two leaders, cementing political mutual trust, leveraging the preferential arrangements under the bilateral free trade agreement, and deepening cooperation in trade, investment, infrastructure and emerging industries, Han said.

China also encourages its enterprises to invest in Serbia and further advance China-Serbia friendly and cooperative relations, he noted.

Mesarovic said Serbia highly values high-level mutual trust between the two countries and reaffirms its adherence to the one-China policy. She expressed gratitude for China's strong support for Serbia's national development and said Serbia is ready to strengthen development synergy with China and continuously deepen cooperation in various fields to benefit the two peoples.

Chinese vice president meets Serbian Deputy Prime Minister