28.08.202502:28:56UTC+00China Stocks Rise on AI, Chip Boost

On Thursday, the Shanghai Composite index edged up by 0.1% to surpass the 3,800 mark, while the Shenzhen Component increased by 0.7%, reaching 12,380. This uptick indicates a partial recovery from the previous session's setbacks, as stocks in the artificial intelligence and semiconductor sectors continued their upward momentum. Earlier in the week, China’s State Council launched its "AI Plus" initiative, aimed at accelerating the incorporation of AI within the technology and consumer sectors. This month, Chinese stocks have experienced significant gains driven by reduced US-China trade tensions, anticipated new economic stimulus measures, and optimistic market influences such as increased fund inflows, a rise in retail participation, and leveraged buying. Nevertheless, Wednesday's profit-taking demonstrated investors' cautious stance regarding the rally's long-term viability. Among individual stocks, Cambricon Technologies rose another 3.9%, following unprecedented gains as the AI chipmaker reported a first-half profit. Other significant performers included Eoptolink Technology with a 4.1% increase, Shanghai Stonehill up by 4.9%, and Zhongji Innolight, which climbed 5.1%.