China Stocks Surge Amid AI and Semiconductor Developments

China's stock market extended its upward momentum, achieving a 10-year high on Thursday, as domestic advancements in artificial intelligence and chips spurred investor enthusiasm in semiconductor shares. A report that restricted local tech firms from purchasing Nvidia chips added to the surge in semiconductor stocks.

The Shanghai Composite Index soared to 3899.96 during early trading, marking its highest level since August 2015. By midday, the blue-chip CSI300 Index rose 0.32%, while the Shanghai Composite Index gained 0.45%. Semiconductor firms saw a significant jump of 6.3%, with AI-related stocks climbing over 3%.

Chinese tech leader Huawei plans to launch the powerful Atlas 950 computing node later this year. Despite a 25-basis-point rate cut by the U.S. Federal Reserve, China's central bank kept its key rate steady, signaling no immediate changes. Hong Kong mirrored the Fed's move, adjusting its base rate via the overnight discount window.