China tech shares rally, tracking global tech rebound and policy support

Sing Tao News

31/07/2026 05:33

SHANGHAI, July 31 (Reuters) - Chinese tech shares rallied on Friday, tracking gains on Wall Street and across Asia as investors bet a recent global sell-off in AI-linked stocks may come to an end, though some benchmark indexes were still poised to post sizeable monthly losses.

** At the midday break, the tech-focused STAR50 index .STAR50 leapt 6%, while the startup board CHINEXT composite index .CHINEXTC advanced 4.9%.
** The benchmark Shanghai Composite index .SSEC edged up 0.8%, while the blue-chip CSI 300 index .CSI300 rose 1.2%.
** Rebounds in tech shares helped offset the monthly losses in benchmark indexes, though SSEC remained down 6.4% so far this month and was on course for the biggest monthly drop since March, while CSI300 dropped 7.5% and looked set for its worst monthly performance since October 2022.
** 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.
** In Hong Kong, the benchmark Hang Seng index .HSI slipped 0.1%, and the city's tech shares .HSTECH gained 0.7%.
** China's factory activity unexpectedly fell into contraction in July, pressured by shrinking new orders that reinforced concerns over slowing economic growth, weak demand at home and elevated production costs.
** U.S. officials told China's Vice Premier He Lifeng on Thursday that they expect Beijing to honor its commitments on rare earths and agricultural products, Treasury Secretary Scott Bessent said, as the two sides prepare for a possible September meeting between President Donald Trump and Chinese President Xi Jinping.

 (Reporting by Shanghai Newsroom; Editing by Ronojoy Mazumdar)