Shanghai Composite down 1%, Shenzhen Component falls 0.68%, ChiNext drops 0.14%

Shanghai Composite down 1%, Shenzhen Component falls 0.68%, ChiNext drops 0.14%

China's stock markets experienced a mixed day on Friday, September 2, 2025, with the Shanghai Composite Index down 1%, the Shenzhen Component Index falling 0.68%, and the ChiNext Index dropping 0.14%. These declines come after a robust August, marked by significant gains across major indices [1].

The Shanghai Composite Index, which had been on a multi-year high, closed at 3,857.93 points, a 0.37% decrease from the previous day. The Shenzhen Component Index, which had been performing strongly, closed at 12,696.15 points, down 0.99% [1].

The ChiNext Index, which tracks growth enterprises similar to the Nasdaq, dropped 0.14% to 1,020.45 points. This index had seen a robust 24% gain in August, but the recent decline indicates a cooling off in investor sentiment [1].

The computing power and chip sectors, which had been major drivers of August's gains, saw mixed performances. Lithium battery makers like CATL continued to perform well, while chip stocks experienced significant losses. Cambricon, an AI chip provider, saw its stock price drop from Thursday's highs, despite remaining the highest-priced stock in the A-share market [1].

The market volatility comes as Legence, a Blackstone-owned engineering and maintenance services provider, plans to sell 26 million shares in an IPO. The company aims for a market capitalization of around $3 billion, with Blackstone retaining about 74% of the voting power after the IPO [2]. The IPO is expected to price on September 11, 2025, and the company plans to trade on the Nasdaq under the symbol LGN.

Investors are closely watching the performance of these indices and the impact of the Legence IPO on market sentiment. The recent declines suggest a potential shift in investor confidence, but the long-term outlook remains positive, given the strong performance of major sectors in August.

References:
[1] https://www.globaltimes.cn/page/202508/1342067.shtml
[2] https://www.ainvest.com/news/legence-plans-ipo-3-billion-market-cap-blackstone-retain-74-voting-power-2509/