Chinese Stocks Fall as Nvidia Tightens China AI Access

MT Newswires Live15:43

Chinese stocks fell on Tuesday, led by losses in technology shares, as concerns over restrictions on China's access to artificial intelligence computing capacity weighed on investor sentiment.

The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.8% lower to 3,608.10. The Shenzhen Component Index declined 1.2% to 10,876.99.

The SSE STAR 50 Index (SHA:000688), which tracks the 50 largest science and technology companies on the Shanghai bourse, fell 3.8% on Tuesday.

A report that Nvidia is requiring its cloud partners to generate at least 51% of revenue from customers outside China further bore down on technology shares. The move could further constrain Chinese access to AI computing resources, adding to concerns over the outlook for the country's technology sector.

Meanwhile, China will increase banks' foreign-exchange reserve ratio to 6% from 4% starting Nov. 15, seeking to slow the yuan's sustained appreciation and ease upward pressure on the currency.

In company news, Delton Technology Guangzhou (SHE:001389) Deputy General Manager and Board Secretary Zeng Yangqing and CFO He Jianqing collectively purchased 43,000 A shares on Nov. 2. Shares of the printed circuit board manufacturer dropped 8% Tuesday.

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