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HK up as mainland sentiment recovers from AI jitters

Xenia. W by Xenia. W
23 July 2026
in Business, News
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Mainland stocks reversed losses earlier on Thursday to end the day higher as sentiment recovered from the recent AI-led correction while investors continued to rotate into defensive plays.

In Hong Kong, the benchmark Hang Seng Index closed 318 points, or 1.3 percent, higher at 25,210 on turnover of HK$233.48 billion.

The tech index was 30 points, or 0.6 percent, up at 4,698 while the China enterprises index was 101 points, or 1.2 percent, higher at 8,352.

Market heavyweight Tencent bounced one percent after shedding more than seven percent in the previous session

Further north, the benchmark Shanghai Composite Index ended higher by just under 10 points, or 0.25 percent, at 3,876.

The Shenzhen Component Index was 61 points, or 0.44 percent, up at 14,123 while the ChiNext was up a tad shy of nine points, or 0.25 percent, at 3,575.

The banking sector added 0.6 percent, leading gains.

The defence sector strengthened two percent and rare earth stocks added nearly three percent.

Among other gainers, the CSI Shanghai-Shenzhen-Hong Kong Gold Industry Equity Index jumped 1.6 percent as the precious metal rallied.

The new energy vehicle sector climbed 3.6 percent despite new ⁠US restrictions, while new energy stocks jumped 3.7 percent.

⁠The correction in the tech ⁠sectors also eased, with the tech-focused Star 50 Index narrowing losses to 3.8 percent.

The AI sector declined 2.5 percent.

“The ⁠recent drop in A-shares is mostly a ‘passive’ reaction to external risks,” analysts at Datong Securities said in a note.

“Looking at market conditions, the pullback has already released a lot of pressure from leveraged ⁠trading and negative sentiment, and technical indicators suggest stocks may be oversold.”

Meanwhile, regulators have been holding frequent meetings to signal stability, and listed companies are actively buying back shares and increasing their holdings.

With support building on multiple fronts, market confidence should get a boost, they added.

In Tokyo, the Nikkei share average ended 307 points, or 0.46 percent, higher as chip-related stocks tracked US peers higher though prospects for an early rate hike from the Bank of ⁠Japan limited gains.

The broader Topix gained 20 points, or 0.51 percent, to 4,053.

In Seoul, the Kospi closed up 299 points, or 4.4 percent, at 7,096 for a third straight session on Thursday while the won firmed against the US dollar, boosted by optimism over global technology demand and stronger-than-expected economic growth driven by chip exports. (Reuters/Xinhua)

Tags: BusinessFinance
Xenia. W

Xenia. W

Xenia is a Hong Kong–based writer and content creator focusing on financial markets, policy and the city’s evolving economic landscape. With over ten years of experience in higher education and tourism‑related projects, she specialises in transforming complex information into clear, reader‑friendly insights for both professional and general audiences. ​ Drawing on a background in bilingual Chinese–English translation and editing, Xenia writes across topics including Hong Kong and US stocks, market structure, macro trends and how policy shifts affect everyday investors.

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