On February 4th, major indices showed divergent performances, with the ChiNext Index falling more than 2%, while the Shanghai Composite Index edged up 0.02% and the Shenzhen Component Index declined 1.08%. Sectors such as computing power hardware, semiconductor chips, and AI applications led the declines, with over 2,800 stocks falling across the Shanghai, Shenzhen, and Beijing exchanges.
By the time of writing, Zhongji Innolight Co.,Ltd. had dropped 9.31%, and Eoptolink Technology Inc.,Ltd. had slumped 9.84%, with the trading volume for both stocks exceeding ten billion yuan.
The AI application sector experienced volatile declines, with Gravity Media hitting the downside limit, while Tiandi Online, SMZDM, Insentek, Yeahka, and Provincial Grid Group were among the top losers. The Hang Seng Tech Index in Hong Kong saw its losses widen to 2%. Chip stocks trended lower early in the session, with Shanghai Fudan falling over 6%, Hua Hong Semiconductor down more than 4%, Gigadevice Semiconductors declining over 3%, and SMIC dropping nearly 3%. Kingdee International dropped 11.06%, Meitu plunged 9.74%, and Mobvista fell 7.47%. Market sentiment was impacted by an overnight sell-off in U.S. software stocks, triggered by new tools from Anthropic. Analysts including Toni Kaplan from Morgan Stanley noted in a report on Thomson Reuters: Anthropic's introduction of new features for its Claude Cowork AI agent in the legal sector intensifies competition in the field. We view this as a sign of heightened competition, which could potentially have negative implications. For several months, investors have been closely monitoring the software industry, guarding against potential business risks posed by AI. Analysis suggests that although the threat of AI disruption has been factored into Wall Street's outlook for 2026, investors remain highly vigilant about the impact from AI agents. In January this year, Anthropic released another product, the Claude Cowork tool, which further amplified investor concerns. Last week, Alphabet Inc. began rolling out its Project Genie, capable of creating immersive game worlds from text or image prompts, which also negatively affected video game stocks. Other indicators suggest that software companies are underperforming relative to other technology firms. Data shows that so far this earnings season, only 71% of software companies in the S&P 500 have reported revenue above expectations, compared to 85% for the broader technology sector.
Comments