China's mainland shares closed up on Tuesday, led by AI and semiconductor stocks, after stronger-than-expected factory activity pointed to resilient demand for high-tech exports.
** China's blue-chip CSI300 Index SZSE:399300 ended 1.1% higher, while the Shanghai Composite Index SSE:000001 gained 0.5%. The Hong Kong benchmark Hang Seng Index HSI:HSI was down 0.6%.
** Hang Seng Index dropped 9.1% for the month, its steepest monthly loss since January 2024, and was down 7.7% for the quarter.
** The CSI 300 Index was up 1.8% and 11.9% for the month and quarter, respectively.
** The 5G Communication Index SSE:931079 was up 4.4%, while onshore semiconductor shares SSE:H30184 rose 3.3%. The tech-focused STAR50 Index SSE:000688 gained 3.9%.
** China's factory activity returned to expansion in June, driven by demand for chips, computers and other AI-related products, as robust export orders and front-loading to the United States to get ahead of possible tariffs later this year offset weakness elsewhere in the economy.
** The data eased near-term growth concerns but kept expectations for further policy support intact, UBS analysts said in a note, as recent activity indicators continued to point to an uneven consumer recovery. The investment bank said investors should watch for policy signals from the July Politburo meeting.
** Shares of Chinese memory chipmaker GigaDevice Semiconductor SSE:603986 fell as much as 7% in early trade, while its Hong Kong-listed shares SSE:603986 ended 4.3% lower, after the company warned of the risk of further tightening in wafer capacity supply from upstream foundry partners.
** Tech majors listed in Hong Kong HSI:HSTECH were up 1.8%.
** China's stock market has split sharply this year, with AI supply-chain shares rallying to record highs while weak domestic demand weighed on traditional sectors.
** Onshore financial shares SZSE:399914 dropped 1.6%, while consumer staple stocks SSE:000932 slipped nearly 1%.