China and Hong Kong equities traded higher on Friday, supported by stronger-than-expected July trade data that reinforced optimism over the country's export resilience and the continued strength of artificial intelligence-driven demand, Reuters reported.
China's blue-chip CSI300 Index rose 0.8% by the midday break, while the Shanghai Composite Index gained 0.5%. In Hong Kong, the benchmark Hang Seng Index advanced 0.2%, reflecting improved investor confidence across regional markets.
According to data reported by Reuters, China's exports exceeded market expectations in July, highlighting the manufacturing giant's ability to maintain export momentum despite a challenging global economic backdrop. The robust performance was largely driven by sustained demand for high-tech products linked to the global expansion of AI infrastructure.
Semiconductor exports were a standout performer, with their value nearly doubling compared with the same period last year. The sharp increase underscored the growing importance of AI-related technologies in supporting China's export sector.
Analysts said demand associated with artificial intelligence continued to underpin China's export performance and is likely to keep trade data resilient through the third quarter. They noted that ongoing investment in AI infrastructure worldwide remains a significant source of demand for advanced technology products.
Market sentiment also received a boost from improving global appetite for AI-related investments. Analysts at Morgan Stanley said in a research note that stronger risk sentiment surrounding AI themes had supported equity markets.
Sector-wise, biotech and telecommunications stocks led the gains in mainland markets, climbing 4.1% and 3.9%, respectively. Technology shares also attracted buying interest, with Hong Kong-listed Chinese tech giants edging up 0.3%.
Morgan Stanley, as reported by Reuters, said it favours Hong Kong equities in the near term, citing their relatively lower exposure to the crowded global AI trade and signs that corporate earnings are beginning to stabilise.
Broader market participation remained strong across mainland exchanges. The Shenzhen index gained 1.03%, while the ChiNext Composite Index, which tracks China's start-up-focused companies, rose 1.75%. Shanghai's technology-heavy STAR50 Index also advanced 1.02%, reflecting continued investor interest in innovation-driven sectors.
The positive session suggests investors remain encouraged by China's export strength and the sustained momentum in AI-related industries, even as broader economic challenges persist.
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