China's Investors Held Out for Higher Highs Amid Renewed Interest In AI Trade

Li Chen
13 Aug, 2026
Hong Kong

Stocks in China advanced amid a renewed interest in AI-related stocks, and energy stocks lacked direction following conflicting signals from the Middle East. 

The Hang Seng Index edged up 0.01%, and the mainland-focused CSI 300 Index increased 0.5% tracking strength across Asian markets. 

AI- and semiconductor-linked stocks extended this week's gains ahead of quarterly results from SMIC later today, and investors are looking for insights into the demand for advanced chips. 

Tech-heavy benchmarks in Tokyo and Seoul soared 1.6% and 4.5%, respectively, following strong earnings from major tech companies, which reinforced confidence in sustained AI infrastructure. 

Moreover, AI adoption is accelerating across a wider range of applications and broader segments of the economy, supporting the case for revenue momentum. 

The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task. 

Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics. 

The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May. 

The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.  

U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026.

 

China Indexes and Stocks 

The Hang Seng Index edged up 0.01% to 25,442.61, and the mainland-focused CSI 300 Index increased 0.5% to 4,712.14. 

SMIC gained 3.6% to HK $69.85 ahead of the company's quarterly results later on Thursday. 

Zhongji Innolight increased 2.8% to ¥947.0, Eoptolink Technology advanced 4.2% to ¥446.0, Cambricon Technologies gained 3.2% to ¥1,142.08, and NAURA Technology edged up a fraction to ¥760.0. 

Energy stocks struggled to advance on Thursday amid contradictory signals from the U.S., Iran, and Oman, reinforcing the view that the reopening of the Strait of Hormuz is likely to take longer than previously estimated. 

CNOOC Ltd. decreased 1.3% to HK $23.64, PetroChina fell 0.8% to HK $9.44, and China Petroleum and Chemical declined 0.8% to HK $4.22.