SHANGHAI: Mainland China stocks rebounded on Thursday, a day after Shanghai benchmark’s steepest daily drop since April, as optimism around Beijing’s artificial intelligence push fuelled gains in tech shares. Meanwhile, Hong Kong shares extended losses to its third straight session, dragged by food delivery group Meituan’s profit slump.
At the close, the Shanghai Composite index rose 1.14 percent to 3,843.60 points. The blue-chip CSI300 index was up 1.77 percent.
Shanghai’s tech-focused STAR Market ended the session 7.23 percent higher and looked set to record its biggest-ever monthly rise.
Semiconductor stocks led gains, with the sub-index tracking the sector jumping 7.27 percent, on rising expectations that China will accelerate efforts on domestic AI chip alternatives.
China’s chipmakers are seeking to triple the country’s output of AI chips in 2026 to reduce dependence on Nvidia, the Financial Times reported on Wednesday.
Nvidia’s Chinese competitors, SMIC and Cambricon jumped 10.76 percent and 15.73 percent, respectively.
GF Fund Management lifted investment curbs on a tech-focused feeder fund just a day after imposing them.
On Wednesday, the fund house had set a daily purchase cap of 100 yuan ($13.98) on the feeder fund for the GF Star Growth Index ETF, triggering market risk concerns and contributing to Shanghai’s biggest fall in nearly five months.
China’s stock market is on a tear, fuelled by state money and big institutions, with analysts saying the absence of retail investor euphoria suggests the rally could be more sustainable despite a sluggish economic recovery.
Investors will shift focus to the Chinese government’s fourth plenum in October, which is expected to discuss the 15th five-year plan and anchor policy expectations, traders and analysts said.
At the close, the Hang Seng index dropped 0.81 percent at 24,998.82 points.
Losses were led by a 12.55 percent drop in Meituan, which posted an 89 percent drop in second-quarter adjusted net profit on rising competition in the instant retail sector.
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