Global AI Surge Supported China's Factory Activity Expansion In June

Li Chen
30 Jun, 2026
Hong Kong

China's indexes lacked direction as investors reviewed the latest updates on business activities. 

The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index edged up 0.5% after the factory activities expanded for the fourth consecutive month in a row. 

NBS Manufacturing PMI increased to 50.3 in June from 50.0 in the previous month, according to the National Bureau of Statistics. 

The strong export demand for AI-related electric and electronic goods drove the increase in factory activities, despite subdued domestic demand. 

The measure of factory activities showed growth amid Middle East conflict, but strong demand from the ASEAN region and the U.S. supported high-tech exports. 

The NBS nonmanufacturing PMI increased to 50.2 from 50.1 in the previous month amid signs of stabilization in the sector. 

Crude oil prices hovered near the pre-war level as commercial shipment activity picked up in the Strait of Hormuz. 

Brent crude oil prices for immediate-month delivery held at $73.65 a barrel as investors held out for progress in US-Iran peace talks later this week. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.3% to 22,726.02, and the mainland-focused CSI 300 Index added 0.5% to 4,951.56. 

Financial services providers and resource sector stocks led decliners in trading on Tuesday. 

China Life, Zijin Mining, Industrial and Commercial Bank, China Construction Bank, and Agriculture Bank of China declined between 3% and 5%. 

Semiconductor-related stocks stayed in focus in Hong Kong and in Shenzhen following a rebound in tech stocks in overnight trading in New York. 

SMIC jumped 7%, GigaDevice Semiconductor dropped 3%, NAURA Technology increased 2.9%, and Eoptolink soared 9%.