FX.co ★ China Stocks Head for Strong Monthly Gain

In Friday’s trading, the Shanghai Composite Index increased by 0.4% to approximately 3,860 points, while the Shenzhen Component Index saw a 0.5% rise, reaching 12,630 points. This continued the positive momentum from the previous trading session, as the market benefited from broad-based strength. Both indices are positioned for robust monthly gains, driven by several positive factors: easing trade tensions between the US and China, anticipation of new economic stimulus measures, and supportive elements such as increased fund inflows, a rise in retail investor participation, and an uptick in margin buying. The rally was largely fueled by renewed interest in artificial intelligence and semiconductor stocks, despite ongoing issues regarding weak fundamentals in these sectors. Significant gains were seen with China Northern Rare Earth and Victory Giant, each climbing by 2.5%. Dosilicon Co experienced a significant surge of 16.4%, Shanghai Stonehill rose by 4.8%, and Suzhou TFC gained 6.8%. Conversely, Cambricon Technologies saw a decline of 6.4%, halting a record rally, after the AI chipmaker announced a shift to profitability in the first half of the year.