Shanghai, Hong Kong — July 18, 2025:
China’s stock markets saw modest gains on Thursday, fueled by fresh optimism surrounding artificial intelligence stocks, regulatory backing for the electric vehicle (EV) sector, and an encouraging market outlook from investment bank Citi.
🔹 Shanghai & CSI300 Close Higher
At the end of the trading session, the Shanghai Composite Index edged up by 0.4%, reaching 3,516.83, while the CSI300 index, which tracks China’s top blue-chip firms, advanced by 0.7%. This growth reflects rising investor confidence across several sectors.
🔹 AI & Info-Tech Stocks Lead the Rally
The technology sector was among the top gainers, with AI-related stocks jumping 1.8% and information technology shares climbing 2.1%. The bullish sentiment was sparked by reports that Nvidia will increase the supply of its H20 AI chips to China, a move seen as a positive signal for the country’s tech development amid ongoing trade complexities.
🔹 Auto Sector Gains on Government Regulation
Auto shares rose 1.7%, boosted by a government announcement aiming to regulate the ongoing price wars and excessive competition in the electric vehicle market. The move is expected to stabilize the industry and protect smaller manufacturers, thereby encouraging long-term investment.
🔹 Hong Kong Market Holds Steady
In Hong Kong, the Hang Seng Index remained flat on the day but managed to stay near its four-month high, indicating resilience despite global economic uncertainties.
🔹 Healthcare & Biotech Stocks Surge Over 5%
The biotech and healthcare sectors delivered impressive performances, with both sectors soaring over 5%. This surge followed a significant softening of rhetoric from former U.S. President Donald Trump regarding China, which reignited hopes for a positive turn in U.S.-China trade negotiations.
🔹 Citi Turns Bullish on China
Analysts at Citigroup have now upgraded China equities to “overweight”, highlighting an improved earnings outlook, attractive valuations, and structural growth opportunities — particularly in AI, fintech, and corporate reforms. The bank also noted that recent news around the resumption of AI chip exports from U.S. firms could act as a tailwind for internet and tech companies in China.
“While China’s domestic economy still faces mixed signals, stronger policy support for consumer demand could act as a positive catalyst,” Citi analysts said in a Thursday report.
✅ Summary
| Sector | Performance |
| Shanghai Composite | +0.4% |
| CSI300 Index | +0.7% |
| AI-related Shares | +1.8% |
| Info-Tech Sector | +2.1% |
| Auto Stocks | +1.7% |
| Healthcare & Biotech | +5%+ |
| Hang Seng Index (HK) | Flat (near 4-month high) |
🔍 Final Thoughts
The combination of regulatory clarity, international chip supply, and upgraded investor outlook is breathing new life into China’s stock markets. While global challenges remain, sectors like AI, biotech, and auto are increasingly becoming China’s engines of growth.
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