SHANGHAI: China stocks closed up on Thursday, hovering near its highest level in more than three years, as investors remained bullish on AI plays despite concerns over potential US restrictions on Chinese innovative drugs.
China’s blue-chip CSI300 Index ended up 2.3 percent near its highest level since March 2022, while the Shanghai Composite Index gained 1.7 percent. Hong Kong’s benchmark Hang Seng index edged 0.4 percent lower.
Onshore AI shares jumped 6.8 percent, their largest single-day gain since October 18, 2024, with sector bellwether Cambricon Technologies surging 9 percent.
Shares of optical module giants Zhongji Innolight and Eoptolink Technology climbed 14 percent and 13 percent, respectively.
Technology and artificial intelligence stocks have been the main drivers of China’s stock market rally this year, with the STAR50 Index up 34 percent year-to-date.
Biotech shares, both onshore and offshore, slumped at the open on Thursday following reports that the Trump administration is considering sweeping restrictions on Chinese drug imports. However, losses were trimmed by market close, with the CSI Brand Name Drug Index down just 0.8 percent.
The draft targeting Chinese innovative drugs is unlikely to be implemented in practice, analysts at Orient Securities said in a note to investors, citing challenges such as restricting patients from accessing more effective treatments. “A previous bill targeting Chinese CROs (Contract Research Organizations), such as WuXi AppTec, also failed to be effectively enforced.”
Tech shares trading in Hong Kong fell at the open but were roughly flat by market close, with Alibaba up slightly after the company said it plans to raise $3.2 billion through the sale of a zero-coupon convertible bond.
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