China stocks rise as surge in chipmaking shares offsets tumble in optical module plays
- China’s large-cap CSI300 Index was up 1% by the lunch break
SHANGHAI: China stocks rose to a one-week high on Wednesday, as surges in chipmaking shares offset slumps in optical module stocks. The Hong Kong market also edged higher.
Sentiment was also aided by a rally in global equities as Middle East tension eased again.
China’s large-cap CSI300 Index was up 1% by the lunch break, while the Shanghai Composite Index gained 1.3%.
Hong Kong’s Hang Seng Index climbed 0.1%.
China’s chipmaking stocks jumped after Reuters reported that Samsung Electronics and SK Hynix are evaluating chipmaking equipment from China’s Advanced Micro-Fabrication Equipment (AMEC) for possible use at their Chinese factories, as they seek to hedge against the risk of tighter U.S. export controls.
AMEC shares surged 14% in Shanghai. An index tracking China’s semiconductor material and equipment stocks jumped 9%.
China stocks rise as AI, chip shares rebound
Chinese chipmakers also shot up.
But Chinese optical module makers such as Zhongji Innolight slumped after a Reuters report that Washington was drafting a ban on U.S. imports of new models of Chinese data center components.
Export-dependent optical module makers including Zhongji Innolight, Eoptolink Technology and Suzhou TFC Optical Communications all suffered heavy selling.
Energy shares in both China and Hong Kong also fell, as oil prices pulled back amid signs mediators were making progress in efforts to end the U.S.-Iran war.
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