Broad Rally to End the Week
China's equity benchmarks closed sharply higher on Friday, August 7, 2026, capping a strong opening week for August after a difficult July. The Shanghai Composite Index rose 1.02% to 3,940.04, having opened lower at 3,896.49 and traded as low as 3,885.62 before reversing.
| Index | Close (Aug 7, 2026) | Change |
|---|---|---|
| Shanghai Composite | 3,940.04 | +1.02% |
| Shenzhen Component | 14,311.01 | +1.42% |
| ChiNext Index | 3,563.12 | +1.35% |
| BSE 50 | 1,134.25 | +1.01% |
| STAR 50 | - | +2.51% |
| Hang Seng Index | 25,668.03 | +0.54% |
Breadth was strong, with more than 2,800 stocks advancing. Combined Shanghai and Shenzhen turnover reached 2.66 trillion yuan, an increase of 135.6 billion yuan from the previous session. The Shanghai Composite traded within a 1.42% intraday range and turnover on the index alone was 1.21 trillion yuan.
Weekly Picture
Across the full week, combined turnover on the Shanghai, Shenzhen and Beijing exchanges totalled 12.15 trillion yuan, slightly above the prior week. The Shanghai Composite gained close to 3% over the five sessions, its strongest weekly performance in months and a notable turnaround after July's consolidation.
Northbound trading accounted for 345.15 billion yuan on August 7, or 12.95% of total market turnover. China Jushi, GigaDevice and Cambricon were the three most actively traded names via the Shanghai Connect channel, with China Jushi turnover at 3.914 billion yuan. Sixty-six stocks appeared on the exchanges' Dragon-Tiger disclosure list, with total listed turnover of 28.576 billion yuan; China Rare Earth drew the largest net buying.
Sector Leadership: Biotech Takes Over
Leadership rotated decisively toward healthcare. Innovative drug and contract research organization (CRO) names led both markets:
- Medical research outsourcing sector: +13.03%
- CRO concept: +10.84%
- Medical services: +8.19%
- Other biological products: +8.09%
- Printed circuit boards: +8.31%
Baihua Pharmaceutical (600721.SH) registered a fourth consecutive limit-up. Hasanlian (002900.SZ) and Asymchem (002821.SZ) each hit the daily limit twice in four sessions, while Joinn Laboratories (603127.SH) also rallied. Elsewhere, main capital flowed most heavily into electronic components, semiconductors and chemical pharmaceuticals.
Macro Backdrop
The rally coincided with a run of supportive data. Customs reported on August 7 that January-July goods trade rose 17.3% to 30.13 trillion yuan, with July trade up 19.2%. SAFE reported foreign exchange reserves of $3.4188 trillion at the end of July, up 0.07% on the month. Beijing announced a property easing package the same evening.
Market structure remains a concern for some strategists, who have flagged crowding in technology names — electronics alone recently accounted for roughly 30% of total A-share turnover, close to double the level at the start of the year. July's correction changed prices but not positioning, leaving the market vulnerable if the biotech rotation proves short-lived.
Watch Next
July inflation data from the National Bureau of Statistics is the near-term catalyst, with consensus forecasts pointing to CPI cooling from June's 1.0% and PPI easing from 4.1%.