China, Hong Kong Stocks Climb as July Exports Beat Forecasts

Chinese and Hong Kong equities advanced on Friday, buoyed by trade data that showed exports beating expectations in July. The stronger-than-expected figures reinforced the role of overseas shipments as a key growth driver for the world's second-largest economy.

By the midday break, China's blue-chip CSI300 Index had climbed 0.8%, while the Shanghai Composite Index added 0.5%. Hong Kong's benchmark Hang Seng Index rose a more modest 0.2%. Smaller indices also posted gains, with the Shenzhen index up 1.03%, the ChiNext board higher by 1.75%, and Shanghai's STAR50 index advancing 1.02%.

A surge in high-tech shipments underpinned the data. Semiconductor exports nearly doubled in value from a year earlier, reflecting sustained global demand tied to the artificial-intelligence infrastructure buildout. Analysts noted that AI-related demand is likely to keep China's trade figures robust through the third quarter.

Sector-wise, biotech and telecommunications stocks led the advance, rising 4.1% and 3.9%, respectively. Hong Kong-listed Chinese technology giants added 0.3%.

Market sentiment was also lifted by improving global risk appetite for AI-linked investment themes, according to analysts at Morgan Stanley. The bank said it prefers Hong Kong stocks in the near term, citing the market's lower exposure to the crowded global AI trade and signs that earnings are bottoming out.