Executive Summary
The SSE Composite advanced 0.47% over the full week ended July 24, 2026, closing at 3,814.20 after beginning the period at 3,796.28. The index climbed sharply on July 21 with a 1.79% gain, held steady mid-week, added 0.25% on July 23, then fell 1.61% on July 24. The net result reflected resilience in select growth areas amid broader caution.
Weekly Drivers
- Artificial intelligence and technology shares provided key support throughout the week.
- Escalating Middle East tensions weighed on sentiment and contributed to Friday's decline.
- Data pointing to slowing domestic economic growth added to investor caution.
- No major policy announcements or earnings surprises dominated the period.
Sectors & Breadth
Technology and AI-related sectors led advances, helping the index post a net gain despite the late-week reversal. Traditional sectors such as financials and industrials showed more mixed or lagging performance. Market breadth appeared relatively narrow, with gains concentrated in a subset of growth names rather than broad participation across the index.
What to Watch
- Upcoming economic data releases including industrial production and retail sales figures.
- Any developments in geopolitical tensions that could affect risk appetite.
- Policy signals from Chinese authorities on growth support measures.
- Northbound Stock Connect flow trends for indications of foreign positioning shifts.
Capital-Flow Context
Foreign holdings of onshore A-shares have continued a gradual recovery, with recent reports noting increases from year-end levels. Northbound flows via Stock Connect have shown intermittent support, though overall foreign direct investment into China remains in modest decline on an annual basis. Currency effects and passive allocation trends continue to influence positioning in the Shanghai market, with investors monitoring for sustained inflows amid global diversification efforts.