AI Stocks Propel Chinese Markets to Record Highs
Chinese stocks surged to a decade-high, driven by gains in AI-related shares. The Shanghai Composite and CSI300 indices rose significantly, fueled by Beijing's chip self-sufficiency policies. Nvidia and DeepSeek were key players in the optimistic market trend boosted by easing U.S.-China tensions and investor confidence.
In a remarkable show of strength, Chinese stocks soared to new decade-highs on Friday, led by a surge in artificial intelligence-related shares. This market boost has set the stage for the best weekly performance in nearly nine months, driven by robust investor sentiment.
The Shanghai Composite Index notched a 0.7% rise by the midday trading break, marking a fresh high since August 2015, and nudging its weekly gain to 2.7%. Additionally, the blue-chip CSI300 Index climbed 1.2%, reaching a new 10-month peak. Driving the rally, AI and semiconductor shares experienced substantial gains, with the CSI Semiconductor Industry Index and CSI Artificial Intelligence Index making significant strides.
The market upswing gained momentum following Reuters' report that Nvidia requested Foxconn to pause work on the H20 chip. DeepSeek's AI model upgrade further underscored China's chip self-sufficiency ambitions, with analysts anticipating continued investor interest as U.S.-China trade relations stabilize and Beijing addresses industrial overcapacity. Hong Kong's Hang Seng Index also benefited, closing the week's losses at 0.3% as investors followed the A-share rally.
(With inputs from agencies.)
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