The Shangai Composite Index Closes 0.38% Higher

The Shanghai Composite rose 0.4% to 4,059 on Monday, while the Shenzhen Component added 0.7% to 15,705, supported by improving sentiment as shipments through the Strait of Hormuz showed signs of recovery. After a series of unexplained vessel U-turns and route diversions disrupted traffic in the strategic waterway, oil and gas flows along a US-protected transit corridor began to normalize, easing concerns over potential supply disruptions. On the domestic front, investors turned their attention to key inflation data due later this week. Consumer inflation is expected to hold steady at 1.2%, while producer price inflation is forecast to accelerate slightly to 4.1% from 3.9%. Among individual stocks, notable gainers included CNOOC Limited (3.5%), Zijin Mining Group (5.8%), and Shenzhen Longsys Electronics (12.5%). In contrast, CATL slipped 0.4% after investing in CarbonScape Ltd. to expand bio-based graphite production amid growing EV and energy storage demand.

The Shangai Composite Index rose 15 points or 0.38 percent on Friday to close at 4044 points. Leading the gains are Avic Aviation Engine (6.21%), Zijin Mining (6.01%) and Sany Heavy Industry (4.90%). Top losers were Huaneng (-6.83%), Sanan Optoelectron (-3.52%) and Agricultural Bank of China (-1.67%).

The Shanghai Composite rose 0.37% to close at 4,044 on Friday, while the Shenzhen Component gained 0.64% to 15,598, as technology stocks rebounded after a recent broad selloff. While investors remain confident in the long-term growth story around artificial intelligence, concerns have increasingly surfaced that valuations may have outpaced fundamentals amid rising investment costs and intensifying competition across the industry. Leading the rebound were Eoptolink Technology (3.34%), Victory Giant Technology (0.65%), and Shennan Circuit (7.42%). Broader support also came from BYD (5.86%), CNOOC (3.51%), Zijin Mining Group (5.78%), and Luxshare Precision Industry (5.81%), helping both benchmarks finish higher. On the economic front, a private survey showed the Services PMI eased to 54.1 in June from 54.4 in May but remained above expectations of 53. For the week, the Shanghai Composite added 0.41%, while the Shenzhen Component declined 1.17%, marking its second consecutive weekly loss.