SHANGHAI: Chinese technology shares rose following a roller-coaster ride on Tuesday, helping lift key benchmark indexes as semiconductor stocks rebounded sharply from earlier losses.
The benchmark Shanghai Composite index closed up 1.8 percent, while the blue-chip CSI 300 index jumped 3.1 percent.
The tech-focused STAR50 index leapt 10.8 percent, after falling more than 3 percent in early deals, booking the biggest daily jump since October 18, 2024. The wild swing came after the index logged a more than 30 percent gain over the last three months, tracking its regional peers.
Start-up board CHINEXT composite index gained 5.7 percent following early volatility. Semiconductor shares were the best-performing sector, with the CSI 300 sub-index surging 12.2 percent.
“We believe the tech sector and AI trades will remain the main investment themes in the second half of 2026, despite crowded tech trades unwinding somewhat,” said Lei Meng, China equity strategist at UBS Securities.
The sector was expected to remain robust on the back of earnings growth due to rapid AI advances globally, and China’s strong policy support, Meng said.
China’s securities regulator chief chaired a meeting with investors on Monday and vowed to make “all efforts” to maintain stable market operations, after a rout over the past two weeks roiled the stock market.
China’s five largest insurers, including China Life Insurance Co, pledged to support the capital market developments firmly and boosted their investments, the state-owned Securities Times reported.
Hong Kong-listed tech shares ended 1.3 percent higher, while the benchmark Hang Seng index closed largely flat.
Investors are shifting their attention to an upcoming meeting of the Communist Party’s Politburo, the country’s top decision-making body, expected around the end of July.
Policymakers are expected to set the economic policy agenda for the second half of the year.
“The current setup resembles mid-2024 in some respects, before a major easing package, with slowing growth momentum, weaker consumption and investment, equity market underperformance, and local government financing strains leading to more aggressive tax collections,” said Hui Shan, chief China economist at Goldman Sachs. “We expect the July Politburo meeting to deliver stronger easing rhetoric.”