The Shanghai Composite fell 0.8% to a near four-month low of 3,853 on Friday, while the Shenzhen Component slid 2.1% to a more than three-month low of 14,191, as sentiment toward China's technology hardware sector turned increasingly bearish.
The STAR 50 Index's fear/greed indicator, which measures selling pressure relative to buying activity, dropped to its lowest level since April 2022, as concerns over stretched valuations following a blockbuster quarter and a pullback in high-flying memory-chip shares weighed on sentiment.
Meanwhile, attention turned to the World AI Conference in Shanghai, where President Xi Jinping is expected to deliver a keynote address, highlighting China's drive for technological self-sufficiency and influence in global AI standards.
Technology names remained under pressure, led by Cambricon Technologies (-3%), Hygon Information Technology (-2.6%), Zhongji Innolight (-7.7%), Eoptolink Technology (-7.3%) and NAURA Technology (-2.3%).