Mumbai, July 3 -- Chinese stock markets closed higher on Friday, led by a rebound in technology shares after recent losses. Investors remain positive about the long-term growth potential of artificial intelligence, although concerns over high valuations, rising investment costs and increasing competition continue to weigh on sentiment.

The Shanghai Composite gained 0.37% to close at 4,044, while the Shenzhen Component rose 0.64% to 15,598.

Technology stocks led the gains, with Eoptolink Technology rising 3.34%, Victory Giant Technology adding 0.65% and Shennan Circuit jumping 7.42%. Other strong performers included BYD (+5.86%), CNOOC (+3.51%), Zijin Mining Group (+5.78%) and Luxshare Precision Industry (+5.81%).

Investor sentiment was...