China blue-chip index hits 4-year high as tech stocks surge
- The blue-chip CSI300 Index advanced 1.5%
SHANGHAI: China’s blue-chip index touched a four-year high on Wednesday as traders returning from a five-day holiday snapped up tech shares, inspired by persistent global enthusiasm for artificial intelligence and by fresh signs of China’s economic resilience.
Hong Kong stocks also rose, joining a regional relief rally as hopes grew for a U.S.-Iran deal to end the two-month Middle East war.
The blue-chip CSI300 Index advanced 1.5%, its highest level since early 2022. The Shanghai Composite Index gained 1.1% and the tech-focused STAR50 Index surged 5.5%.
In Hong Kong, the Hang Seng Index rose 1.2%.
“If you look at global events during the holiday, what people had feared did not happen,” Deng Lijun, strategist at Huajin Securities, said, referring to concerns of renewed U.S. strikes on Iran.
Instead, China’s market reopening was greeted by signs of domestic economic resilience and strong tech share performance in global markets, he told a road show.
Hong Kong stocks track firmer Asia; tech stocks lead
Data released on Wednesday showed China’s services activity expanded at a faster pace in April.
Sentiment was also lifted by robust growth in China’s tech sector.
The 2025 net profit of companies listed on Shenzhen’s startup board ChiNext and Shanghai’s STAR Market grew 20% year-on-year, far outpacing the broader market, reflecting tentative success in China’s economic restructuring.
SWS Research judged that the profitability of China-listed companies has bottomed out, underlining the edge in Chinese manufacturing.
Meanwhile, confidence about China’s technology self-reliance grew after media reports that Huawei expects revenue from its AI chips to jump at least 60% this year.
An index tracking Chinese chipmakers surged 9% to an all-time high, while investors also piled into AI stocks.
Energy stocks fell in China amid signs of easing tensions in the Middle East.
U.S. President Donald Trump said on Tuesday he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran.
Comments