Chinese equities closed lower on Sept. 1 as the ChiNext Index fell 1.32%, the Shenzhen Component Index declined 1.02% and the STAR 50 Index lost more than 2%. Turnover on the Shanghai and Shenzhen exchanges totaled 2.03 trillion yuan, down 97.6 billion yuan from the previous session, even as more than 3,300 stocks advanced. Consumer shares outperformed, with several retail and food companies reaching their daily limits. Agricultural stocks remained active, led by Wanxiang Doneed's sixth consecutive limit-up session, while short-drama shares extended gains. AI application stocks rose during the session, with Yowant Technology and Jingyeda closing limit-up. Financial shares were relatively strong: Hualin Securities hit its daily limit, and Bank of China, China Construction Bank, Chengdu Bank and Jiangsu Bank reached record highs. PCB-related shares, including Forming, Tongguan Copper Foil and Nanya New Material, declined. The sector rotation followed earlier reports that renewed Middle East tensions were offsetting improving Chinese manufacturing data, with private manufacturing PMI rising to 51.5 in August from 50.9 in July and official PMI improving to 49.8 from 49.2.