Chinese equities weakened on Monday as falling AI-related stocks pressured the Shanghai Composite and Shenzhen Component. The Shanghai Composite declined 0.4% to 3,872, while the Shenzhen Component dropped 0.8% to 13,370. Sentiment deteriorated after several major AI firms urged a slower pace of technology development, raising questions about AI’s role as a key driver of this year’s market rally. Chinese President Xi Jinping proposed a BRICS (group of major emerging economies) open-source AI community to strengthen cooperation on developing and deploying large language models (AI systems that process and generate text). The proposal underscores Beijing’s effort to expand its influence as international competition over AI governance grows. Cambricon Technologies, SMIC, Zhongji Innolight and Victory Giant Technology were among the biggest decliners. Investors are also preparing for data on house prices, fixed-asset investment, industrial output, retail sales, unemployment and FDI this week.