China stocks rise as AI, chip shares rebound; Hong Kong slips
- The Shanghai Composite index was up 0.2% at 3,815.59 points by the midday break
HONG KONG: China stocks rose on Tuesday as AI and chip shares bounced after a recent selloff, tracking a global rally and buoyed by renewed confidence in domestic tech developments, while Hong Kong shares dipped.
The Shanghai Composite index was up 0.2% at 3,815.59 points by the midday break, while the blue-chip CSI 300 index rose 0.9%.
Gains were led by the technology sector, with the ChiNext Price Index climbing 4.8% and the STAR 50 Index up 2.9%. China’s CSI Artificial Intelligence Index rose 4.6%, the CSI Semiconductor Index climbed 3.2%, while China’s CSI 5G Communication Index surged more than 7%, climbing from their recent lows following sharp corrections.
A version of Chinese startup DeepSeek’s flagship AI model is by far the least expensive to run on benchmark tests among well-known models globally, a research firm Artificial Analysis said, as the company looks to regain momentum after being surpassed by rivals.
“We expect AI to reassert market leadership into August,” analysts at J.P Morgan said in a note. The recent sharp decline in AI-linked cohorts is a healthy rotation rather than the end of the cycle, and it may ultimately create a more attractive entry point in August, they said.
The healthcare sector gained 2.7%, with Wuxi Apptech surging by the 10% daily limit after earnings beats. In Hong Kong, the benchmark Hang Seng Index weakened 0.5%, and the Hang Seng Tech Index lost 0.2%.
Shares of Alibaba gained 1.4% to a two-month high after the company unveiled its largest and most capable AI model to date.
Elsewhere, China’s manufacturing sector expanded at its slowest pace in four months in July as output and new orders rose more slowly, while export orders returned to growth after a contraction, a private-sector survey showed on Monday.
Around the region, Asian markets made cautious gains as investors followed a global rally, with oil prices holding near the lowest levels in weeks as the US-Iran conflict remained at a stalemate.‑Reuters
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