28.08.202507:23:47UTC+00China Stocks Rally on AI, Chip Boost

The Shanghai Composite Index saw a rise of 1.14%, reaching 3,844 points, while the Shenzhen Component Index increased by 2.25% to 12,571 points on Thursday. This uptick reversed the losses from the previous session, driven by a continued rally in artificial intelligence and semiconductor stocks. Earlier in the week, China's State Council introduced the "AI Plus" initiative, a strategic plan aimed at boosting AI integration in technology and consumer sectors. The month has been favorable for Chinese equities, supported by several factors such as de-escalated US-China trade tensions, anticipated new stimulus measures, and robust market catalysts like increased fund inflows, higher retail investor participation, and margin buying. However, the pullback witnessed on Wednesday reflected ongoing apprehensions regarding the rally's sustainability. Among notable stock movements, Cambricon Technologies saw a significant surge of 15.7%, achieving record gains as the AI chip manufacturer reported a profit for the first half of the year. Other remarkable gainers included Eoptolink Technology with a 15.1% increase, Victory Giant rising by 19.6%, and Zhongji Innolight advancing 10.4%.