SHANGHAI: Chinese tech shares rallied on Friday, tracking gains on Wall Street and across Asia on hopes the global AI-driven sell-off was easing, though key indexes still posted hefty losses in July, with the tech-focused STAR 50 suffering its worst month on record.
At the close, the STAR 50 index rose 3 percent, while the startup board CHINEXT composite index advanced 3.4 percent. But the STAR 50 plunged 25.9 percent in July.
The benchmark Shanghai Composite index edged up 0.7 percent, while the blue-chip CSI 300 index rose 0.9 percent.
A rebound in tech shares helped offset the monthly losses in benchmark indexes, though SSEC remained down 6.4 percent this month to notch the biggest monthly drop since March, while CSI300 declined 7.9 percent and looked set for its worst monthly performance since July 2021.
The sharp turnaround on Friday came after China’s leaders pledged at a meeting on Thursday to make efforts to achieve breakthroughs in frontier technologies and promote the development of future industries.
“While there was a lack of major surprises on stimulus measures for property and consumption, the July politburo meeting again highlighted ‘deepening the comprehensive reform of capital market financing and investment’ and a focus on ‘bolstering the market resilience and investor confidence,’” analysts at BNP Paribas said in a note.
“Amid recent equity weakness, this appears to reflect policymakers’ commitment to supporting the market,” they said.
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