Chinese stock markets closed lower on Friday as investors reacted to newly announced US tariffs, which hurt overall market sentiment. The Shanghai Composite fell 1.61% to 3,814.2, while the Shenzhen Component dropped 2.47% to 13,774.7.
The US announced import tariffs of 10% to 12.5% on goods from major trading partners, with Chinese exports facing a 12.5% tariff. This increases China's effective US tariff rate to 22.2%, making it significantly higher than the global average. The move raised concerns about the impact on China's exports and economic growth.
Technology and semiconductor stocks were among the biggest losers. Investors were also worried that the upcoming IPO of CXMT could absorb a large amount of market liquidity, putting additional pressure on the sector. Shares of companies such as Cambricon Technologies, SMIC, Zhongji Innolight, Eoptolink Technology, and Victory Giant Technology all ended lower.
Despite Friday's decline, Chinese equities posted gains for the week. The Shanghai Composite advanced 1.33% over the week, while the Shenzhen Component finished 0.49% higher, supported by earlier gains.
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