Stocks retreat as performance of tech sector weakens

Huang Yixuan
Shares related to Apple Inc perform weakly after the US-listed tech giant introduced its first 5G iPhones on Tuesday, the first without wired earbuds or a power adapter.
Huang Yixuan

China stocks retreated on Wednesday from earlier rallies, partly led by losses in shares related to Apple Inc.

The benchmark Shanghai Composite Index shed 0.56 percent to 3,340.78 points, while the smaller Shenzhen Component Index fell 0.78 percent to 13,691.04 points.

The ChiNext Composite Index, meanwhile, dropped 0.74 percent to 2,764.24 points, and the blue chip CSI300 Index closed 0.66 percent lower at 4,807.1 points.

Turnover on the two major bourses added up to 827.65 billion yuan (US$122.96 billion), shrinking slightly from the 834.95 billion yuan in the previous session.

Mainland markets saw a net outflow of 1.56 billion yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong. Among them, the Shanghai bourse posted a net influx of 205 million yuan, while Shenzhen saw a net outflow of 1.76 billion yuan.

Among industries, the semiconductor sector led the losses, with Foshan NationStar Optoelectronics Co tumbling 8.81 percent and SG Micro Corp falling 7.41 percent.

Stocks related to Apple Inc performed weakly after the US-listed tech giant introduced its first 5G iPhones on Tuesday. The phones will be the first to come without wired earbuds or a power adapter.

"Consumer electronics is a pro-cyclical sector which is heavily influenced by the macro economy," said Kang Shuiyue, chairman and chief investment officer of Danyang Investment, noting that shares related to wireless charging, smart watches and microLED all posted drops in general in the session.

Catering and tourism shares were also among the big decliners amid rising concern about the pandemic situation. Tempus Global Business Service Group Holding slumped over 8 percent and UTour Group Co was down over 6 percent.

Agricultural shares, electronic component companies and the Internet sector also retreated, while the education industry, petrochemical firms and office supplies stocks rose.

On the Star Market, 89 of the 183 listed firms posted gains, three remained flat, while the rest fell.

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