Today, mainland Chinese investors often focus on the performance of U.S. stocks and lament the tepid performance at home. Of course, there are clear macroeconomic differences. Few major Chinese stocks have more than doubled in price this year like Nvidia. But looking at first-half performance, many Chinese stocks still rose by double digits, including some artificial intelligence stocks. Take the three best-performing stocks in the CSI 300 Index, which tracks the largest stocks on the Shanghai and Shenzhen stock exchanges. Foxconn Industrial At the top of the list is Apple supplier Foxconn Industrial Internet. Listed in Shanghai, it soared 81% in the first six months of this year. BofA Securities gave Foxconn Industrial Internet (FII) a buy rating and raised its price target to 33 yuan ($4.54) on June 26, more than 20% higher than Friday’s closing price. “FII is the main supplier of iPhone casings, and casings are also FII’s high-margin business,” analysts said. “As we expect a better iPhone shipment cycle in 2025-26, we expect strong case sales to support FII’s margins/earnings. Additionally, AI servers remain intact due to strong demand and faster GPU platforms, We remain optimistic about long-term growth. Bank of America expects iPhone shipments to grow by 3% this year and 6% next year. Avary Holding, a listed company in Shenzhen, followed closely, with its stock price rising by nearly 81% as of this week. Four’s data shows that its three largest foreign institutional shareholders in terms of market value are Hong Kong’s Standard Chartered Bank, HSBC and JPMorgan Chase. After Avary released its latest financial report in mid-May, Huatai analysts said they expected the company to benefit from mobile phones. and demand related to artificial intelligence in the PC field. Huatai gives Avary a buy rating. Huatai analysts said: “Avary has strong advantages in high-end (high-density interconnection circuit boards) and flexible printed circuits, allowing it to profitably utilize these. trend. “In addition, the company is venturing into new areas such as automotive and servers, fostering deeper collaboration with industry leaders and acquiring new customers. “Zhongji InnoLight ranked third in the CSI 300 in the first half of the year, with an increase of 70%. Nomura Securities rated Zhongji InnoLight as a “buy”, and its analysts spoke with the company in late June. Optical Communications Inc. met. Nomura Securities analysts said in a June 23 report: “Based on the company’s comments, we are increasingly confident that there will be strong demand for generative artificial intelligence training and inference-driven infrastructure. Benefiting global leading companies such as InnoLight Technology, analysts said: “We believe InnoLight should be able to maintain its leading position in the global optical module market, thanks to the company’s technology-focused management team and strong execution. and strong relationships with the world’s top artificial intelligence infrastructure customers. In stark contrast, the CSI 300 has fallen slightly overall so far this year, hurt by slowing economic growth and uncertainty about future profits. The composite index rose 18% in the first half of the year in the United States, making it harder for local actively managed funds to outperform the market, leading to “an influx of investment from institutional investors” into index-tracking ETFs. Capital controls make it difficult for many mainland Chinese investors to access overseas markets. But financial institutions have created ways for them to participate in this trend, albeit from a distance. Take the ETF tracking the Nasdaq index jointly managed by Invesco and Great Wall as an example. With so many purchases, it’s trading at a premium of more than 10% to its net asset value. That prompted the Shenzhen Stock Exchange, where the ETF trades, to suspend trading multiple times, especially in the past week. —CNBC’s Michael Bloom contributed to this report.
