The Shanghai Composite slid 0.64% to close at 4,139, while the Shenzhen Component fell 1.37% to 14,169 on Tuesday, as mainland equities pulled back from multi-year highs amid profit-taking in high-flying defense and technology shares. After hitting record levels, defense and commercial space stocks corrected sharply, with China Aerospace, China Satellite, and Addsino Co each dropping 10%. Artificial intelligence-related names also weakened, including Zhongji Innolight (-1.1%), Shenzhen Sunway (-10.8%) and Eoptolink Technology (-2.1%). In other developments, a debt advisory firm urged China Vanke Co. dollar bondholders to consider calling a default on the troubled developer’s notes. Meanwhile, investors looked ahead to upcoming Chinese trade data for further insight into the health of the world’s second-largest economy.
