The Shangai Composite Index Closes 0.27% Higher

The Shanghai Composite fell 0.6% to 3,853 on Friday, while the Shenzhen Component lost 0.6% to 14,041, reversing the previous session’s gains as fresh US tariffs dampened market sentiment. Washington announced duties of 10%–12.5% on imports from most major trading partners as part of President Trump’s renewed tariff push, with Chinese goods facing a 12.5% levy. Limiting losses, the People's Bank of China said it would inject a net CNY 500 billion into the banking system through a one-year MLF operation, following CNY 700 billion in liquidity added earlier this month via outright reverse repos. The move marks the largest medium- to long-term liquidity injection since February and is aimed at supporting growth ahead of the late-July Politburo meeting. Among the biggest laggards were Foxconn Industrial Internet (-3%), Zijin Mining Group (-4.8%), Zhongji Innolight (-1.9%), and Eoptolink Technology (-2.2%). Despite Friday’s retreat, both indexes remained on track for weekly gains.

The Shangai Composite Index gained 10 points or 0.27 percent on Thursday to close at 3877 points. Gains were led by Avic Aviation Engine (4.86%), Aluminum Corporation of China (3.71%) and Shanghai Electric (3.36%). Biggest losers were Yonyou Soft (-2.30%), Sanan Optoelectron (-1.87%) and Poly Real Estate (-1.54%).

The Shanghai Composite rose 0.25% to close at a one-week high of 3,876.8, while the Shenzhen Component gained 0.44% to 14,123.3 on Thursday, as investor optimism grew that Chinese technology firms will benefit from a global surge in AI infrastructure spending. In China, the E Fund Blue Chip Selected Mixed Fund significantly reduced its exposure to liquor producers and increased holdings in AI-linked companies such as SMIC and Suzhou Dongshan Precision Manufacturing. Similarly, the Invesco Great Wall Dingyi Mixed Fund boosted positions in AI beneficiaries including Zhongji Innolight and Piotech, replacing former top holdings such as Kweichow Moutai and Guangdong Haid Group. Financial stocks advanced, with Industrial and Commercial Bank of China rising 1.05% and Agricultural Bank of China gaining 1.07%, while AI-related heavyweight Zhongji Innolight added 1.1%. Other notable gainers included Foxconn Industrial Internet (3.57%), CATL (3.69%), BYD (1.18%), and CNOOC (1.85%).