Shenzhen Component Index rose above 11,000, highest since March, now up over 0.81%

Shenzhen Component Index rose above 11,000, highest since March, now up over 0.81%

The Shenzhen Component Index (SZI) surged above 11,000 on July 2, 2025, reaching its highest level since March, according to data from CNBC [1]. The index closed at 10,990.62, up by 0.70% from the previous close of 10,913.84. This marks a significant increase, with the index now up over 0.81% for the day.

The upward movement was driven by a combination of factors, including positive sentiment surrounding the potential resumption of H20 AI chip sales to China by Nvidia, as reported by CNBC [2]. Additionally, the index benefited from a strengthening Japanese yen following the defeat of the ruling party in Japan, which contributed to a positive market sentiment in the Asia-Pacific region [3].

Investors also took note of the latest earnings reports from Taiwan Semiconductor (TSMC) and other tech stocks, which showed strong performance in AI, robotics, and Apple supply chain sectors [4]. TSMC's earnings call, in particular, highlighted the potential for future demand in humanoid robots, which sparked a rally in related stocks [5].

The mixed stock futures during Thursday's premarket hours, following President Trump's denial of plans to fire Jerome Powell, also played a role in the market's optimism. Trump's comments helped to stabilize the market and boost investor confidence [6].

Looking ahead, the market will continue to watch for clarity on US tariffs and the potential impact on tech stocks. Investors remain hopeful that the uncertainty surrounding US tariffs will be resolved, supporting market stability [7].

References:
[1] https://www.cnbc.com/quotes/.SZI
[2] https://www.cnbc.com/2025/07/14/chinese-tech-stocks-rally-on-nvidia-intent-to-resume-h20-ai-chip-sales-to-china-soon.html
[3] https://www.cnbc.com/2025/07/16/asia-pacific-markets-mostly-rise-as-investors-assess-japans-trade-data-and-trumps-plans-for-powell.html
[4] https://www.taiwannews.com.tw/news/6159173
[5] https://www.ainvest.com/news/stock-market-update-tsm-ual-key-movers-trump-comments-powell-2507/
[6] https://www.business-standard.com/world-news/not-planning-to-fire-federal-reserve-chair-jerome-powell-says-trump-125071601495_1.html
[7] https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-nvidia-chipmaker-taiwan-semiconductor-netflix-trump-powell-ferrari/