JKB Financial Services Ltd.

As on : 23-Jul-2026

Market Commentary - Foreign Markets
23-Jul-2026 17:41

China markets gain as AI optimism lifts technology stocks

Chinese stock markets ended higher on Thursday, with the Shanghai Composite rising 0.25% to a one-week high of 3,876.8 and the Shenzhen Component gaining 0.44% to 14,123.3.

Investor sentiment improved on expectations that Chinese technology companies will benefit from the growing global investment in artificial intelligence (AI) infrastructure. Reflecting this trend, several major mutual funds reduced their exposure to traditional sectors such as liquor companies and increased investments in AI-related firms, including chipmaker SMIC, Suzhou Dongshan Precision Manufacturing, Zhongji Innolight, and Piotech.

Financial stocks also supported the market's gains. Industrial and Commercial Bank of China rose 1.05%, while Agricultural Bank of China gained 1.07%. Among technology stocks, Zhongji Innolight advanced 1.1%.

Other major gainers included Foxconn Industrial Internet, which climbed 3.57%, CATL (3.69%), BYD (1.18%), and CNOOC (1.85%), as investors continued to favour companies linked to AI, technology, and industrial growth.

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