Major technology and semiconductor stocks led the decline, with companies including Cambricon Technologies, NAURA Technology, Zhongji Innolight, GigaDevice Semiconductor, SMIC, Eoptolink Technology and Hygon Information Technology among the key losers. The correction reflected profit booking rather than a broad shift in sentiment, with investors reassessing valuations after the recent technology-led rally.

Market focus is now shifting towards a series of important economic data releases expected next week, including trade figures, second-quarter GDP growth, industrial production, retail sales and unemployment data. These indicators are likely to provide further insight into the pace of China's economic recovery and influence near-term market direction.

For the week, the Shanghai Composite declined 1.2%, while the Shenzhen Component dropped 3.5%, as investors adopted a more cautious approach following the strong performance of technology stocks in recent sessions.

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