China Stocks Slide on Uncertainty in Relations with US; Tech Stocks Decline

MT Newswires Live10-08

Chinese stocks closed lower on the first trading day following the week-long National Day holiday as investors returned to trading amid uncertainty in China-U.S. relations.

The Shanghai Composite Index, the main gauge of Chinese stocks, slipped 0.8%, or by 30.29 points, to 3,811.90. The Shenzhen Component Index sank 2.1%, or by 266.72 points, to clsoe at 12,620.90.

Optimism following the visit of Chinese President Xi Jinping to Washington in late September already faded, but Taiwan's de facto representative to the U.S. said ties remained strong, Reuters reported separately.

The Federal Communications Commission will also vote on Oct. 29 to bar certain foreign test laboratories from certifying electronic devices, it said Wednesday. The proposal follows the adoption of "bad labs" rules in May 2025, banning China-linked entities from testing equipment due to national security risks.

Tech-linked shares lost on Thursday, with the CSI Info Tech Index down 4%. Industry leaders ChangXin Memory Technologies (SHA:688825) and Foxconn Industrial Internet (SHA:601138), fell 8% and 4%, respectively.

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