The Chinese stock market rebounded on August 7 after a decline the previous day, buoyed by strong export figures. The Shanghai Composite Index closed up 1.02% at 3,940.04, the Shenzhen Component Index rose 1.42% to 14,311.01, and the ChiNext Index increased by 1.35% to 3,563.12.
The General Administration of Customs announced that July exports reached $397.8 billion, a 23.9% increase compared to the same month last year. While this figure fell short of June's growth rate of 27%, it exceeded the market forecast of 22.2% compiled by Reuters. China's trade surplus for July was recorded at $112.5 billion.
The growth in exports for July was driven by rising global demand for hardware used in AI data centers and advanced technology products. Additionally, Chinese manufacturers accelerated exports to the U.S. ahead of potential new tariffs, contributing to the increase in export growth. The customs agency noted that "a complete supply chain and strong innovation capabilities provide a foundation for the development of Chinese trading companies."
In a report released on the same day, Fangzheng Securities stated, "Changes in external liquidity are not the key driver of market direction; rather, China's policy direction and fundamental conditions are the main factors." They added that sectors with global competitive advantages in advanced manufacturing and rising resource prices would drive the Chinese stock market upward.
Notably, stocks related to 6G technology surged, with companies like Wuhan Fangu and Tongyu Communication hitting their daily price limits. This uptick was fueled by news that NVIDIA is seeking partnerships with Chinese 6G base station firms. NVIDIA aims to provide GPU chips and a technology ecosystem, enabling Chinese partners to manufacture 6G AI-RAN (AI-based Radio Access Network) base stations for international markets.
The biotechnology sector also showed strength, with companies like Baipusais and Ruikang Pharmaceutical reaching their daily price limits. Reports indicated that the overseas sales of candidate substances from Chinese pharmaceutical companies reached $99.7 billion in the first half of the year, doubling the figure for 2024. Additionally, the upward revision of annual performance forecasts by leading biotech firm Baijishenzhou positively impacted the sector.
Meanwhile, the People's Bank of China set the yuan's daily reference rate at 6.7904 yuan per dollar, an increase of 0.0009 yuan from the previous day, reflecting a 0.01% decline in the yuan's value.
* This article has been translated by AI.
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