Recent advancements in China’s artificial intelligence environment have most certainly had an impact on the Hong Kong stocks as well as on the Chinese tech giants. This technological inclusivity has sparked some real enthusiasm from investors. A further surge in the market came earlier this year after meetings with top technology executives in Beijing. Further matters that influence the markets is retail-driven speculation as well as hot money.
Understanding the stock situation
China stocks struggled for direction on Tuesday as the second quarter economic growth slowed, while a tech rally boosted Hong Kong shares, thanks to Nvidia’sย NVDA.O resumptionย of chip sales to China. At the close, China’s blue-chip CSI300 Index. CSI300 was flat, while the Shanghai Composite Index. SSEC lost 0.4%. Hong Kong benchmark Hang Seng. HSI climbed 1.6%.
Tech giants listed in Hong Kong. HSTECH jumped 2.8%. Data showed China’s gross domestic product grew 5.2% in the April-June quarter from a year earlier, slowing from 5.4% in the first quarter, but just beating analysts’ consensus expectations of a 5.1% rise in a Reuters poll. Analysts said the U.S.-China trade truce and strong exports helped the world’s No.2 economy avoid a sharp slowdown. Meanwhile, the property downturn remained a drag on overall growth, with investment in the sector falling 11.2% year-on-year in the first six months.
The fluctuating world of China
In June, China’s new home prices fell at the fastest monthly pace in eight months, highlighting the weak demand. CSI 300 real estate. CSI000952 dropped more than 1%, among the worst performers in mainland A-shares. The market didn’t move much as there are offsetting data, said Kai Wang, Asia equity market strategist, Morningstar. “For the bad news, consumption sales and housing prices, two key areas that required improvement, did not really show us any significant improvement,” Wang said.
However, U.S. tariffs have not affected China’s overall economy as feared thanks to resilient export data, he added. Meanwhile, the news that Nvidia will resume sales of its H20 artificial intelligence chip to China lifted cloud computing. CSI931469, 5G communications. CSI931079 stocks. In Hong Kong, internet giants jumped, with Alibabaย 9988.HKย and Tencentย 0700.HK gaining 7% and 4%, respectively. Alibaba, or, as officially known Alibaba Group Holding Limited is classed as a Chinese multinational technology company.
Driving technology into the future
The specialization field is retail, e-commerce, internet, technology, etc. Alibaba was founded in June 1999. It provides C2C, B2B and B2C services via there global and Chinese marketplaces. Alibaba also operates and owns a very diverse portfolio of companies around across the globe within various business sectors. The latest news is positive for overall sector sentiment, and for Alibaba/Tencent/Baidu 9888.HKย /Kingsoft Cloud3896.HK, said Thomas Chong, an analyst at Jefferies.
In existence for 63 years, Jefferies Group LLC is an American multinational independent investment bank. It also serves as a financial services company. Jefferies has its headquarters based in New York City, but the service area is worldwide. It provides its clients with capital markets and financial advisory services, institutional brokerage, asset management as well as securities research.
Developments in China’s AI environment has come a long way. The country has had an ambitious strategy in this regard since as early as 2017. The overall goal of everything is to establish itself as a world leader within the AI innovation hub by the year 2030. The method of achieving this would be by advancing their AI technology, theory as well as applications across different sectors. Some of these sectors are governance, industry as well as defense. Combining all of this, the country is also aiming to accelerate the construction of a worldwide powerhouse in technology and science, all in line with the directives of the Central Committee and the State Council.
GCN.com/REUTERS.