China's Q2 economic growth slightly missed expectations, and the mainland A-shares showed a mixed downward trend in early trading, with more popular stocks declining than rising. Chip stocks were once again sold off, with Hua Hong Grace (01347) and SMIC (00981) both dropping over 4%.

Image source: Hua Hong official website

The SSE Composite Index initially showed a mixed upward trend this morning, rising to 3,981 points, up 14 points, around the time the economic data was released. However, it later fluctuated downwards, closing at a low of 3,950 points, down 16 points, with the decline narrowing to less than 10 points by the end of the session; the index closed at 3,963 points, down 3 points or 0.08%, with a half-day turnover of 809.376 billion yuan (RMB).

The Shenzhen Index underperformed, briefly regaining the 15,000-point mark this morning, reaching a high of 15,041 points, up 116 points, before turning downwards, hitting a low of 14,801 points, down 123 points, with the decline narrowing towards the end; the Shenzhen Index closed at 14,868 points, down 56 points or 0.38%, with a turnover of 906.095 billion yuan.

AP Image

The CSI 300 Index rose 2 points or 0.04%, closing at 4,798 points; the ChiNext Index closed down 13 points or 0.36%, at 3,837 points.

More popular stocks declined than rose, with over half of the stocks on the top 20 list of A-share turnover in the Shanghai and Shenzhen markets reporting losses. The chip and semiconductor-related sectors were under pressure, with Hua Hong Grace A-shares (688347.SH) down 4.69%, at 336.05 yuan; SMIC A-shares (688981.SH) down 4.34%, at 154 yuan. AI chip concept stock Cambricon (688256.SH) fell 4.41%, at 1,348.84 yuan