The Shangai Composite Index Closes 0.07% Lower

The Shanghai Composite edged up to around 3,869 on Thursday, while the Shenzhen Component rose 0.9% to 14,192, with technology shares leading the advance amid growing optimism that AI-related firms will benefit from a surge in global investment in AI infrastructure. In China, the E Fund Blue Chip Selected Mixed Fund sharply reduced its exposure to liquor makers while building positions in AI-related companies such as SMIC and Suzhou Dongshan Precision Manufacturing. Similarly, the Invesco Great Wall Dingyi Mixed Fund increased its exposure to AI beneficiaries, including Zhongji Innolight and Piotech, replacing former top holdings such as Moutai and Guangdong Haid Group. Among technology names, Zhongji Innolight climbed 2.9%, Victory Giant gained 2.9%, and Eoptolink Technology rose 1%. Elsewhere, energy giant CNOOC rose 1.2%, tracking a rally in crude oil prices as persistent Middle East tensions fueled concerns over potential supply disruptions.

The Shangai Composite Index decreased 3 points or 0.07 percent on Wednesday to close at 3862 points. The decline was led by Sanan Optoelectron (-1.20%), NARI Technology (-1.01%) and Yonghui Superstore (-0.96%). On the upside, the strongest performers were Zijin Mining (6.62%), LONGi Green (5.62%) and China Molybdenum (5.46%).

The Shanghai Composite closed little changed at 3,867 on Wednesday, while the Shenzhen Component fell 1.42% to 14,061.4, as concerns over China's growth outlook weighed on market sentiment. Recent data showed that the country’s economy slowed to 4.3% year-on-year in Q2 2026, marking its weakest expansion since Q4 2022 and falling below Beijing’s 4.5%–5.0% target range due to weak consumer demand, subdued private-sector investment, and a prolonged property market slump. On Tuesday, China's State Council pledged to take additional measures to secure this year’s growth objectives. Investors are now looking ahead to the Politburo meeting at the end of July, where top leaders are widely expected to outline the economic policy agenda for the remainder of the year. Technology stocks faced renewed pressure, particularly Zhongji Innolight (-6.66%) and Eoptolink Technology (-7.79%). In contrast, energy stocks outperformed, with PetroChina climbing 2.34% and CNOOC Limited surging 4.72%.