SHANGHAI: Mainland China and Hong Kong stocks rebounded on Wednesday, underpinned by strong gains in tech shares, while fresh signs of easing trade tensions between the world’s two largest economies also lent some support.
At the close, the Shanghai Composite index edged up 0.83% at 3,853.64 points, while the blue-chip CSI300 index rose 1.02%.
Gains were led by tech shares, with Shanghai’s tech-focused STAR50 index jumping 3.49%? and CSI Info Tech sub-index bouncing 2.88%.
China’s CSI all share semiconductor, a sub-index tracking the sector, rose 4.68%.
Chinese e-commerce company Alibaba said on Wednesday it plans to open its first data centres in Brazil, France and the Netherlands as it accelerates its global strategy for artificial intelligence. The Hong Kong-listed shares finished the session up by 9.16%, notching the highest level since 2021.
In Hong Kong, the benchmark Hang Seng index gained 1.37%, while the Hang Seng Tech index jumped 2.53%.
China announced on Tuesday it will forego asking for the benefits it gains from its developing country status at the World Trade Organization, state-run news agency Xinhua and the director-general of the WTO said.
“This essentially removes a point of contention between the US and China and provides some sign of two sides trying to improve relations with each other,” Maybank analysts said in a note.
Separately, with the Shanghai benchmark trading not far from a 10-year peak hit last week, it “has created a money-making effect that is gradually attracting investors off the sidelines, while other asset classes face redemption pressure,” said Lei Meng, China equity strategist at UBS Securities. “This indicates a shift in household wealth from conservative deposits and wealth management products to equities.”
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