China's Indexes Extended 2-Day Gains Amid Regulatory Intervention

Li Chen
23 Jul, 2026
Hong Kong

China's indexes rebounded following choppy trading earlier this week amid a renewed buying of AI-related stocks. 

The Hang Seng Index increased more than 1%, and the mainland-focused CSI 300 Index edged lower 0.1%. 

Regulators, policymakers, and central bankers mounted a concerted effort this week to shore up faltering investor sentiment, and life insurance companies and pension funds stepped up buying. 

China's stocks have struggled to advance this year amid multiple headwinds, including weak domestic consumer spending, lingering weakness in the residential property market, and a deepening jobless rate, despite resilient AI-related and renewable energy product exports. 

Escalating tensions in the Middle East kept market gains in check as the U.S. and Iran war intensified and raised the risks of prolonged disruptions in shipments through the Strait of Hormuz. 

The Brent crude oil price increased 2.5% to $96.41 a barrel as the U.S. and Iran exchanged military strikes over the Strait of Hormuz for the 12th day in a row. 

Hostilities in the region spread to the Red Sea, and the Iran-backed Houthi rebels said they had targeted Saudi Arabian tankers there, raising shipping risks and further choking global energy supplies.

China's AI-related companies are set to accelerate their listings on local exchanges, as model developers, electronic component makers, and device makers look to ramp up new product development and commercialize products and services. 

 

China Indexes and Stocks 

The Hang Seng Index gained 1.2% to 25,195.65, and the mainland-focused CSI 300 Index decreased 0.1% to 4,711.14. 

Victory Giant Technology increased 1.9% to HK $231.20, Eoptolink decreased 2% to ¥498.63, Zhongji Innolight gained 1.6% to ¥1,067.63, and SMIC decreased 3.8% to HK $70.0.