Tech Stocks Surge in China and Hong Kong Amid Easing Sino-US Tensions
Mainland China and Hong Kong stocks rallied, driven by tech shares and easing trade tensions between China and the U.S. The Shanghai index rose 0.83%, while the Hang Seng index gained 1.37%. Alibaba announced new data centers in Brazil, France, and the Netherlands, boosting its shares 9.16%.
In a positive turn of events, Mainland China and Hong Kong stock markets rallied on Wednesday. This upswing was largely due to robust performances in the technology sector and growing optimism over reduced trade tensions between China and the United States.
The Shanghai Composite Index closed up 0.83% at 3,853.64 points, while the blue-chip CSI300 index increased by 1.02%. Tech stocks spearheaded these gains, with the STAR50 index and the CSI Info Tech sub-index jumping 3.49% and 2.88%, respectively.
Chinese e-commerce giant Alibaba also fueled market confidence by announcing the opening of its first data centers in Brazil, France, and the Netherlands, which is part of its global strategy for artificial intelligence expansion. Meanwhile, state media reported that China will no longer seek benefits associated with its developing country status at the WTO, indicating improved U.S.-China relations. This environment has led to a shift in household wealth towards equities, according to UBS Securities' Lei Meng.
(With inputs from agencies.)
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