China Stocks Soar Amid AI Optimism Despite U.S. Restrictions
China's stock markets experienced a significant boost as investor optimism in AI overshadowed concerns about potential U.S. restrictions on Chinese drugs. The CSI300 and Shanghai Composite indices witnessed substantial gains, driven by a surge in technology stocks, while biotech shares faced pressure due to looming restrictions.
On Thursday, Chinese stocks closed higher, reaching their highest levels in over three years, fueled by sustained investor optimism in artificial intelligence despite concerns of potential U.S. limitations on Chinese pharmaceuticals.
The blue-chip CSI300 Index climbed 2.3%, nearing its peak since March 2022. The Shanghai Composite Index also rose 1.7%, although Hong Kong's Hang Seng index dipped slightly by 0.4%. Onshore AI stocks soared by 6.8%, marking their largest single-day gain since October, with Cambricon Technologies leading the charge.
Despite early declines in biotech shares due to apprehensions about U.S. restrictions, the market recovered by close, as analysts considered the implementation of such measures unlikely. In contrast, pig producer Muyuan's shares increased by 5.6% following reports of government discussions to downscale production.
(With inputs from agencies.)
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