The Shangai Composite Index Closes 0.91% Higher

The Shangai Composite Index rose 37 points or 0.91 percent on Tuesday to close at 4119 points. Leading the gains are China Railway (10.00%), Petrochina (5.22%) and Shanghai Petrochemical (4.50%). Top losers were China International (-10.00%), Yonyou Soft (-4.93%) and China Eastern Airlin (-2.53%).

The Shanghai Composite climbed 0.87% to close at 4,117, while the Shenzhen Component gained 1.36% to 14,292 on Tuesday, recovering losses from the last session as Chinese markets reopened after the extended Lunar New Year holiday. Optimism over potentially lower US tariffs supported the rally after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs, offsetting the impact of another AI-driven selloff on Wall Street. Even with Trump threatening to raise global tariffs from 10% to 15% in response to the ruling, China is still expected to face lower average levies on its goods. Domestically, the People’s Bank of China held its 1- and 5-year loan prime rates steady at 3% and 3.5%, respectively, for the ninth consecutive month. Technology and AI stocks led gains, with notable moves from Zhongji Innolight (4.3%), Suzhou TFC (12.7%), Range Intelligent (13.5%), Eoptolink Technology (1.6%) and Giga Device Semiconductor (4.7%).

The Shanghai Composite dropped 1.26% to close at 4,082, while the Shenzhen Component declined 1.28% to 14,100 on Friday, paring gains from earlier in the week as investors positioned ahead of the week-long Lunar New Year holiday, with mainland markets closed from Feb. 16 to 23. Chinese equities mirrored weakness in global markets amid persistent concerns over the sustainability of elevated AI spending and the risk of disruption to certain sectors. Meanwhile, Premier Li Qiang on Wednesday called for a comprehensive push in technological innovation and AI applications, urging breakthroughs across the AI industry chain to unlock the sector’s potential. Tech, clean energy, and mining shares led the decline, including BlueFocus Intelligent (-5.8%), Contemporary Amperex (-2.8%), and Zijin Mining (-5%). Elsewhere, investors are looking ahead to a planned April meeting between President Xi Jinping and President Donald Trump, which could carry implications for bilateral economic relations.