China Indexes Diverged as Investors Questioned Elevated Tech Valuations

Li Chen
16 Jul, 2026
Hong Kong

Stocks in China diverged on Thursday as investors reassessed the sustainability of the AI-driven rally and reviewed the latest economic releases. 

The Hang Seng Index soared nearly 2%, and the CSI 300 Index fell 0.8% as investors questioned the durability of robust earnings growth.

Semiconductor stocks faced heavy selling pressure in early trading, and memory module makers led the decliners in Shanghai, Hong Kong, and Shenzhen. 

The Brent crude oil price decreased 0.5% to $84.58 a barrel as the U.S. struck more targets deep into Iran, and Iran attacked U.S. military bases in Bahrain, Kuwait, Jordan, and the UAE.   

Investors stayed cautious following the release of key economic data earlier this week, highlighting uneven economic recovery and persistent domestic demand growth weakness. 

China's economy expanded at an annual pace of 4.3% in the second quarter, the slowest pace since 2022 as consumers remained on the sidelines. 

Moreover, retail sales, fixed-asset investment, and the urban jobless rate painted mixed economic trends despite strong exports in the first half. 

Investors are closely watching the late-July Politburo, a key policy decision-making arm of the Communist Party, which is set to review the first-half economic performance and set course for the remainder of the year.   

 

China Indexes and Stocks 

The Hang Seng Index increased 1.95% to 25,162.29, and the mainland-focused CSI 300 Index decreased 0.8% to 4,749.86. 

Cambricon Technologies decreased 1.4% to ¥1,327.73; Naura Technology Group fell 3% to ¥720.33; SMIC advanced 0.7% to HK $76.65, and Zhongji Innolight eased 4.6% to ¥1,114.94, and Eoptolink Technology dropped 3.6% to ¥534.12.