Dragon Trails on AI Bullet Train as Stocks Shed Most Since 2001

Chinese equities posted their worst performance since 2001, defying Goldman Sachs' start-of-year call for a 20% rally in the MSCI China index, though Lombard Odier had upgraded the country to a preferred equity market. Separately, China's factory activity returned to expansion in June, powered by demand for AI-related products such as chips and computers, while export front-loading to the US ahead of tariffs cushioned the broader economy.