The Shanghai Composite fell 0.46% to 3,666, while the Shenzhen Component lost 0.87% to 11,451 on Thursday, as investors booked profits after a strong rally that pushed the former toward a decade high.
The surge in recent weeks has been fueled by renewed investor appetite, with margin financing climbing above 2 trillion yuan, a level last seen during the 2015 bull market.
Optimism remains supported by expectations that Beijing will roll out additional stimulus to bolster growth and counter the impact of US tariffs, while global risk sentiment has improved on bets for deeper Federal Reserve rate cuts this year.
Attention is now turning to planned US-China trade talks in the next two to three months to determine the future of economic ties.
Technology stocks led gains, with notable advances in Cambricon Technologies (+10.4%), Hygon Information (+8.8%), China Greatwall (+3.6%), Dawning Information (+6.2%), and Beijing Teamsun (+10%).
