China stocks rebound on tech rally, tracking Asian markets
- Both China’s blue-chip CSI300 Index and the Shanghai Composite Index climbed 0.7% by the lunch break
HONG KONG: China and Hong Kong stocks rebounded on Wednesday, snapping a two-day losing streak, as gains in technology shares tracked a broader rally across Asian markets following chipmaker SK Hynix’s upbeat earnings.
Both China’s blue-chip CSI300 Index and the Shanghai Composite Index climbed 0.7% by the lunch break.
Hong Kong benchmark Hang Seng was up 0.4%, while Hang Seng Tech jumped 1.8%. SK Hynix’s better-than-expected earnings rekindled investor sentiment towards the AI-linked trade.
The South Korean chipmaker reported a more than sevenfold rise in quarterly operating profit.
In A-shares, robot, chip-making and 5G Communications sectors advanced 5.2%, 4.5% and 3.8% respectively to lead the gains.
Shares in leading robot maker Unitree Technology surged 12% ahead of the firm’s release of its first quarterly result after its Shanghai listing.
In Hong Kong, an index tracking AI-related firms rose more than 5%. On the flip side, investors sold liquor stocks on worsening sales.
Baijiu maker Wuliangye lost 5.7% after its third-quarter profit dropped 48%. China’s tech shares had come under heavy selling pressure amid concerns over AI demand and curbs on Chinese exports.
Weak domestic demand has added to investor caution, fuelling calls for fresh stimulus measures to restore market confidence.
Richard Tang, head equity research analyst for Asia at Julius Baer, said the so-called national team of state-backed funds has clearly stepped up its purchase of A-shares in recent sessions, raising hope that a market stabilisation may be in sight.
The smaller Shenzhen index was up 2.06%, the startup board ChiNext Composite index was higher by 3% and Shanghai’s tech-focused STAR50 index was up 2.51%.