China Stocks Steady as Property Gains Offset Biotech and Chip Losses; Hong Kong Advances
Key Takeaways
- •The Shanghai Composite gained 0.1%, while the CSI 300 lost 0.1%.
- •Property shares rose and helped offset weakness in biotech and semiconductor stocks.
- •China’s property sector has remained in a downturn since 2021 and has prompted repeated support measures from Beijing.
- •Mainland semiconductor stocks have been affected by US export controls, while Chinese biotech firms have faced scrutiny from US lawmakers.
- •Hong Kong equities advanced after Wall Street gains and Nvidia's positive outlook boosted AI-related sentiment.
Chinese stocks were largely steady on Friday, as gains in property shares offset losses in biotechnology and semiconductor stocks.
The Shanghai Composite edged up 0.1%, while the CSI 300 — which tracks the largest companies listed on the Shanghai and Shenzhen exchanges — slipped 0.1%.
The advance in property shares stood out against a sector that has been in a prolonged downturn since 2021, one that has weighed on household wealth, local government finances and the broader economy, and has drawn repeated support measures from Beijing. Moves in developer and property shares are closely watched as a barometer of how the sector's stabilisation effort is faring.
The declines in biotech and chip stocks pulled in the opposite direction. Mainland semiconductor shares have spent the past several years navigating US export controls on advanced technology, a persistent fault line in Washington–Beijing economic ties, while Chinese biotech and contract-research firms have faced scrutiny from US lawmakers — a backdrop that has kept both sectors sensitive to policy news.
Hong Kong equities advanced, supported by Wall Street gains and Nvidia's upbeat outlook, which boosted global sentiment around artificial intelligence. The city's benchmark Hang Seng Index carries a heavy weighting in technology stocks, a composition that tends to transmit global AI and US tech-earnings sentiment quickly into Hong Kong listings.
US market data as of 28 Aug 2026, 01:30 AM IST.
Source: Economic Times Markets
