China Stocks Slide as Technology Shares Come Under Pressure After Holiday

SHANGHAI — Chinese stocks fell Thursday as mainland markets reopened after the week-long National Day holiday, with technology shares coming under pressure from higher global bond yields and concerns over elevated valuations.

Chinese stocks fell on Thursday after markets reopened from the week-long National Day holiday. The CSI 300 Index fell 1.09% to 4,310.28, while the Shanghai Composite Index declined 0.79% to 3,811.90. The technology-focused STAR 50 Index dropped 4.82%, according to Reuters and market data.

Mainland markets had been closed from Oct. 1 through Oct. 7 for the National Day holiday, leaving investors to respond Thursday to developments in global financial markets during the break.

Technology stocks were among the biggest sources of pressure as investors reassessed valuations following a strong rally in China's technology sector.

Higher U.S. Treasury yields have also increased pressure on global equity markets by making dollar-denominated assets relatively more attractive.

Hong Kong-listed Chinese stocks also weakened, adding to concerns over the near-term outlook for Chinese technology and growth stocks.

Investors are now turning their attention to the upcoming earnings season, with technology companies expected to provide further clues about corporate demand and the profitability of artificial intelligence-related investments.

The market decline comes as Chinese policymakers continue to focus on supporting economic growth and domestic demand.

Analysts are also watching whether China's technology sector can maintain its strong performance after a period of significant gains.

The latest market movements highlight the sensitivity of Chinese equities to both domestic economic conditions and broader global financial trends.