Chinese stocks climbed higher on Wednesday even as markets worldwide pulled back, with investors focusing on the government’s increased efforts toward technology independence despite growing concerns about international tensions.
Like the Nasdaq, the STAR 50 Index saw its largest rise in a week at its apex, rising 4.3%. By mid-afternoon, the CSI 300, which measures mainland equities more generally, had gained 0.5%.
Global markets decline amid trade tensions
This performance stood in sharp contrast to other markets. Asian stocks overall fell 0.8%, while the S&P 500 posted its worst decline since October after US President Donald Trump threatened tariffs against European countries that turned down his offer to buy Greenland.
What lifted the world’s second-biggest stock market was a new commitment from Chinese officials to speed up development of domestic artificial intelligence and push for advances in technology. Over the past year, Chinese markets have held up better than expected, helped by surprisingly robust exports and government backing for cutting-edge manufacturing and technology sectors, which have softened the impact of tariff disputes.
Chip stocks lead the rally
Chip companies saw particularly strong gains throughout Asia as memory prices increased, but the jumps were especially notable in China. Loongson Technology Corp shot up 20%, while Hygon Information Technology Co rose 17%.
Steven Tseng, senior analyst at Bloomberg Intelligence, noted the chip stock strength appeared widespread rather than just tied to memory price increases. He suggested it was likely related to China’s focus on becoming self-sufficient in chip production.
Earlier this month, mainland Chinese stocks hit their highest point in four years before authorities stepped in with measures like tighter margin financing rules to cool the rally.
Chen Shi, fund manager at Shanghai Jade Stone Investment Management Co, expects stocks to keep climbing due to limited investment options domestically, predicting more days ahead where China beats global markets.
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Source: https://www.cryptopolitan.com/chinese-stocks-surge-on-tech-push/
