Chinese tech stocks shrug off regional weakness to regain momentum after Xi-Trump meeting
Despite sell-offs in the Asia-Pacific region, investors continue to bet that China’s technology stocks will extend their blistering run
Chinese technology stocks rose on Monday, bucking sell-offs in the Asia-Pacific region, as investors bet that the current blistering run will extend its course on the back of earnings resilience and strong sentiment.
The Star Market 50 Index gained 0.8 per cent at the close, while the tech-heavy ChiNext 50 gauge rose by as much as 0.9 per cent before finishing the day 0.4 per cent lower. The stabilisation of South Korea’s Kospi index also helped to lift sentiment, with the tech-heavy gauge erasing a loss of as much as 4.7 per cent to close 0.3 per cent higher.
“The tech sector has remained the driver for this round of the stock rally because of its certainty and visibility,” said Yang Chao, an analyst at China Galaxy Securities. “In the sector, it’s a clear trend that memory chips will raise prices because of explosive demand amid the AI supercycle.”
Shares of Hynix have almost doubled this year, driving a more than 50 per cent gain in the Kospi index.