After a decline the previous day, the Chinese stock market rebounded on July 31 as concerns over overheating in AI investments eased, leading to a surge in buying activity.
On this day, the Shanghai Composite Index closed up 0.72% at 3,832.26, the Shenzhen Component Index rose 2.21% to 13,578.93, and the ChiNext Index increased by 3.06% to 3,343.96.
Strong earnings and positive outlooks from major U.S. tech companies like Amazon and Microsoft have alleviated recent concerns regarding the profitability of AI investments, resulting in a significant influx of buying.
Additionally, news that the Purchasing Managers' Index (PMI), a key economic indicator, had worsened was perceived positively by the Chinese stock market. The National Bureau of Statistics of China announced that the manufacturing PMI for July was 49.2, marking a five-month low and falling significantly below market expectations. This has led to predictions of further economic slowdown in China.
However, the decline in manufacturing PMI is expected to prompt the Chinese government to implement stimulus measures, which the market views as a positive development. Analysts anticipate that China will introduce additional stimulus packages and that the People's Bank of China may lower interest rates in the second half of the year.
In a report, Zhao Shang Securities noted that the phrase 'restoring resilience and confidence in the capital market' was mentioned during the Politburo meeting held on July 30, indicating a likely strengthening of market stabilization measures in the second half of the year. The meeting's clear shift towards a more proactive policy direction is also seen as a positive sign.
On this day, stocks related to AI applications saw significant gains, with companies like BlueFocus Communication Group, Yidian Tianxia, and Longxin Culture hitting their daily price limits.
According to OpenRouter, in June, China's AI models surpassed U.S. models in global market share. As of June 26, Chinese AI models held a 63.5% share compared to just 35.5% for U.S. models over the previous 28 days.
Humanoid-related stocks also performed well, with companies like Zhongdali De and Fenglong Guofen reaching their daily price limits.
News that Chinese humanoid startup Yushukeji is nearing its IPO has also contributed to positive sentiment. Yushukeji announced that it will conduct a preliminary demand survey for its listing on August 5, with the subscription date set for August 10. There are already expectations of a large number of subscription applications.
On this day, the People's Bank of China set the yuan's daily reference rate against the dollar at 6.7894 yuan, an increase of 0.0002 yuan from the previous day, reflecting a 0.003% decline in the yuan's value.
* This article has been translated by AI.
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