China’s stock market exhibited mixed results on Tuesday, with the Shanghai Composite increasing by 0.19% to close at 3,990.3, marking its highest point in over a month, while the Shenzhen Component decreased by 0.56% to 14,622.5.
Investor sentiment remained cautious amidst calls for enhanced government support from Premier Li Qiang, who emphasized the need for measures to achieve this year’s economic targets and accelerate developments in new growth areas, including the “Six Networks.” This cautious approach follows disappointing July economic data indicating a more significant-than-anticipated slowdown in industrial output, retail sales, and fixed-asset investment, raising concerns about the sustainability of China’s economic recovery. Stocks in the AI and semiconductor sectors faced setbacks, with Hygon Information Technology down 3.02% and Eoptolink Technology falling 3.10%. Other semiconductor firms, such as GigaDevice, SMIC, and Zhongji Innolight, also recorded declines. Attention now shifts to the National People’s Congress Standing Committee meeting scheduled for August 25–28, where investors hope for further policy support.