At the midday break, the benchmark Shanghai Composite Index was down 0.9%, while the blue-chip CSI300 Index declined 1.2%. Technology stocks led the losses, with the ChiNext Composite Index falling 3.6% and Shanghai's tech-focused STAR50 Index tumbling 4.2%.
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The CSI 5G Communications Index plunged 6.1% during morning trading, highlighting the pressure on technology-related stocks.
Robot maker Yushu Technology, also known as Unitree, slumped 4.3% after its third-quarter net profit declined despite revenue rising 70% from a year earlier. The results marked the company's first earnings report since listing, Reuters reported.
James Wang, head of China strategy at UBS Investment Bank Research, said valuations of AI hardware companies had approached historical lows, reflecting expectations of a significant slowdown in earnings-per-share growth. He also cautioned that investor sentiment toward artificial intelligence remained fragile, although the risk-reward balance was becoming more attractive and interest could return toward the end of the year as investors repositioned their portfolios for the new year, according to Reuters.
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