Market Updates

China's Indexes Traded Down After AI-Trade Lost Momentum

Li Chen
06 Aug, 2026
Hong Kong

    China's stocks turned lower and halted a two-day advance as a rally in technology and semiconductor stocks lost momentum. 

    The Hang Seng Index decreased nearly 2%, and the mainland-focused CSI 300 Index declined 0.4% as investors booked profit and reassessed valuations as AI-related stocks rebounded sharply from the last month's lows.  

    Electronic and computer component makers led decliners in Shanghai and Hong Kong, tracking declines in overnight trading in New York. 

    The price of Brent crude oil decreased by 0.4% to $79.14 a barrel after Iran and Oman struck an understanding to halt strikes in the Red Sea targeting Saudi tankers. 

    Investors are awaiting the release of international trade data and inflation updates later this week, and resilient exports are likely to advance more than 10% in July. 

     

    China Indexes and Stocks 

    The Hang Seng Index decreased 1.8% to 25,463.51, and the mainland-focused CSI 300 Index dropped 0.4% to 4,637.89. 

    SMIC, Eoptolink Technology, NAURA Technology, Zhongji Innolight, and Hygon Information Technology fell between 2% and 5%. 

     

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