The Shanghai Composite fell 0.3% to below 4,010, while the Shenzhen Component dropped 0.6% to 13,350 on Tuesday as investors locked in profits after Chinese stocks reached fresh ten-year highs. Investors are shifting from high-flying technology and AI-linked names to high-dividend value plays amid concerns that tech earnings may not justify lofty valuations. Several veteran Chinese fund managers also reportedly paused new subscriptions to their products over fears of a market bubble. Notable decliners included Zhongji Innolight (-2.9%), Suzhou TFC Optical (-7.4%), Victory Giant (-3.8%), Foxconn Industrial (-3.9%), and Zhejiang Sanhua (-3.3%). On the trade front, Beijing lifted export restrictions on strategic products to the US this week, including rare earth minerals and key technologies, reflecting easing Sino-US trade tensions.
