The Shanghai Composite dropped 0.6% to below 3,840 while the Shenzhen Component slipped 0.2% to 12,530 on Wednesday, marking a second straight session of losses as investors continued to book profits. Sentiment was further dampened by geopolitical risks after President Xi Jinping warned the world faced a choice of “peace or war” and “dialogue or confrontation” during a military parade. The remarks came as US President Donald Trump alleged on social media that China was conspiring against the US. On the economic side, a private survey showed China’s services sector expanded at the fastest pace in 15 months in August on the back of strong export demand. Technology shares led the retreat, with notable declines in Eoptolink Technology (-2.3%), Cambricon Technologies (-5.3%), Victory Giant (-1.4%), Suzhou TFC (-1.8%) and Foxconn Industrial.