01.07.202602:05:07UTC+00China Stocks Gain to Kick Off July

The Shanghai Composite inched up 0.1% to 4,098 on Wednesday, while the Shenzhen Component advanced 0.6% to 16,303, with both benchmarks extending their winning streak to a third straight session, led largely by technology shares. The sector continued to climb as investors looked past recent worries about elevated AI-related valuations and instead focused on upbeat guidance from semiconductor makers.

Chinese tech names were broadly higher, including SMIC (up 0.9%), Shennan Circuit (3.8%), Zhongji Innolight (2.2%), Eoptolink Technology (1.6%), and NAURA Technology (1.9%).

On the macro front, a private survey showed China’s manufacturing PMI slipping to a three-month low of 51.7 in June from 51.8 in May, though it remained slightly above market expectations of 51.6. The reading followed stronger-than-anticipated official data released on Tuesday, which indicated that the manufacturing PMI rose to 50.3 from 50.0, beating forecasts of 50.1 amid resilient demand for high-tech exports.