Shanghai Composite rises to over one-month high as Shenzhen falls

The Shanghai Composite rose 0.2% to an over one-month high of around 3,991 on Tuesday, while the Shenzhen Component fell 0.6% to 14,613, with markets turning choppy after recent gains in technology and semiconductor stocks.

Sentiment in the sector has recently been buoyed by strong corporate earnings and Beijing’s continued push to develop a self-sufficient semiconductor industry, with Huawei and CXMT making notable progress in chip development.

Meanwhile, caution lingered after July economic data highlighted a weak start to the second half of the year, with fixed-asset investment, industrial production, and retail sales all falling short of expectations.

Technology, semiconductor, and AI-related shares posted declines, including Hygon Information Technology (-1.3%), SMIC (-0.4%), Giga Device Semiconductor (-0.4%), and Eoptolink Technology (-1%).

In contrast, PetroChina (1.2%) and CNOOC (1.5%) outperformed on higher oil prices amid fading hopes for a Middle East peace deal.