China's Politburo Provided Verbal Support to Capital Markets, Business Activities Growth Weakened In July

Li Chen
31 Jul, 2026
Hong Kong

China's benchmark indexes advanced on Friday, driven by a rise in AI-related stocks. 

The Hang Seng decreased 0.1%, and the mainland-focused CI 300 Index increased 1.2% as investors reviewed the latest comments from the Politburo. 

The Politburo, a meeting of top policymakers, signaled its commitment to provide timely support for the economy but provided few details.  

Investors held out for more policy support after the initial set of coordinated actions between the central bank and state-controlled investment funds failed to revive market sentiment.

China's annual economic growth slowed down to 4.3% in the second quarter from 5.0% in the first quarter, and the latest business survey confirmed slowing activities in both manufacturing and services sectors. 

The NBS Manufacturing PMI unexpectedly declined to 49.2 in July from 50.3 in the previous month. said the National Bureau of Statistics. 

The factory activity growth contracted for the first time since February amid persistent weakness in domestic demand and rising costs for export orders. 

China's non-manufacturing PMI eased to 49.0 in July from 50.2 in June, pointing to a renewed contraction after two months of modest expansion, the statistical agency said in a separate report. 

The weak readings reinforced concerns over slowing growth, and most economists are holding out for the official GDP growth to ease below 3% in the second half of the year.  

China's GDP growth estimates are widely estimated, and many private domestic and international economists estimate Chinese economic growth may be close to 1%, sharply below the official estimate of between 4.5% and 5.0%. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.1% to 25,830.69, and the mainland-focused CSI 300 Index advanced 1.2% to 4,605.92. 

For the week, the Hang Seng Index rose 3.4%, and the mainland-focused CSI 300 Index decreased 1.2%. 

Semiconductor- and AI-related stocks shot up sharply, tracking gains in tech stocks in overnight trading in New York after Microsoft reiterated its commitment to continue investing in artificial intelligence infrastructure. 

Cambricon Technologies Corp. soared 8.2% to ¥1,128.02, Zhongji Innolight advanced 8.2% to ¥934.25, SMIC edged up 3.2% to HK $63.90, and Eoptolink Technology advanced 10.4% to ¥409.50.