Chinese Stocks Post Worst Monthly Drop Since 2016 as AI Selloff Hits Shanghai

Chinese stocks posted their largest monthly decline since early 2016 on Friday, driven by a global selloff in artificial intelligence shares. The Shanghai index fell 1.4%, closing near a one-year low. The CSI300 index dropped 1.4% on the day and 8.5% for the month, its worst monthly performance in over a decade. Over the past 12 weeks, it lost 15%, marking its longest losing streak on record. AI-related stocks led declines after US tech selloffs raised concerns about heavy AI investment returns. In contrast, Hong Kong's Hang Seng rose 1.5%, with financial and property sectors gaining. Basic consumer goods stocks in China climbed 2% as investors sought safer assets. The STAR50 tech index fell 5.5%, while optical module maker Eoptolink Tech plunged 14% for the day and 50% this month.