Stocks in China Hit 4-week High

The Shangai Composite Index rose 3 points or 0.07 percent on Friday to close at 3930 points. Leading the gains are Fuyao Glass Indu (2.66%), Avic Aviation Engine (1.63%) and Baosteel (1.41%). Top losers were Datang Intl (-6.21%), Greenland Holdings (-3.05%) and Yonghui Superstore (-2.44%).

The Shanghai Composite traded flat to close at 3,927.2 on Friday, while the Shenzhen Component gained 0.45% to 14,354.3, as strong gains in semiconductor and AI-related stocks helped offset concerns over fresh US trade measures. Sentiment in the sector strengthened after Semiconductor Manufacturing International Corp. reported that its Q2 profit more than tripled from a year earlier, comfortably beating market expectations amid robust demand for AI-related semiconductors. SMIC advanced 2.65%, while GigaDevice Semiconductor rose 3.21%. Meanwhile, Hua Hong Semiconductor tumbled 8.57%, despite reporting record Q2 revenue and profit growth amid AI demand. Still, uncertainties lingered after the US announced a 100% tariff on drone imports and related components, while smaller drones deemed to pose limited national security risks will face a 25% tariff. Over the week, the Shanghai Composite fell 0.33%, while the Shenzhen Component rose 0.30%.

The Shangai Composite Index dropped 20 points or 0.50 percent on Thursday to close at 3927 points. Losses were led by Aluminum Corporation of China (-5.63%), Zijin Mining (-4.14%) and Greenland Holdings (-3.70%). Offsetting the fall, top gainers were Datang Intl (10.02%), Bank Of China (2.06%) and Agricultural Bank of China (1.55%).