China's stock market ends Monday with a 0.72% gain

Chinese stocks closed higher on Monday, with the Shanghai Composite Index up 0.72% to 3,559.79 points and the Shenzhen Component Index up 0.86% to 11,007.49 points.

Chinese stocks closed higher on Monday, with the Shanghai Composite Index up 0.72% to 3,559.79 points and the Shenzhen Component Index up 0.86% to 11,007.49 points. The gains were driven by a combination of positive global risk sentiment, strong U.S. economic data, and ongoing optimism about artificial intelligence (AI) technology [4].

The Shanghai Composite Index, which includes stocks from both state-owned and private companies, ended the day at 3,559.79 points, marking a 0.72% increase from the previous session. Meanwhile, the Shenzhen Component Index, which is composed of smaller and more innovative companies, closed at 11,007.49 points, representing an 0.86% gain [2].

The positive performance of Chinese stocks was bolstered by several factors. Firstly, strong U.S. economic data, including a rebound in retail sales and better-than-expected jobless claims, lifted risk appetite and investor sentiment [4]. Secondly, the resumption of Nvidia’s H20 chip shipments and optimism from Taiwan Semiconductor Manufacturing Company (TSMC) regarding AI chip demand further boosted AI-related stocks [4]. Finally, the ongoing crackdown on price wars in various sectors, including the electric vehicle (EV) sector, by the Chinese government has instilled confidence among investors [3].

Despite the overall positive sentiment, concerns over U.S. anti-dumping tariffs on Chinese graphite and potential disruptions to the EV supply chain remain a significant risk factor [3]. Additionally, the trade war between the U.S. and China continues to cast a shadow over the global economy, with U.S. President Donald Trump intensifying his trade war with threats of 30 percent tariffs on the European Union and Mexico [1].

In conclusion, Chinese stocks closed higher on Monday, driven by a mix of positive global sentiment, strong U.S. economic data, and optimism about AI technology. However, the ongoing trade war and potential disruptions to the EV supply chain pose significant risks to the market. Investors should closely monitor these developments and remain vigilant to any changes in the geopolitical landscape.

References:
[1] https://www.business-standard.com/markets/capital-market-news/china-s-shanghai-composite-index-edged-up-0-27-125071400817_1.html
[2] https://tradingeconomics.com/china/stock-market
[3] https://www.bastillepost.com/global/article/5040954-analyst-recaps-chinese-stock-market-performance-on-friday-2
[4] https://www.tradingview.com/news/te_news:471104:0-chinese-stocks-rallies-for-second-session/