AI and Chip Stocks Propel Shanghai to 10-Year High Amid Tech Focus
Shanghai stocks reached a 10-year high, driven by gains in chip and AI sectors as China's focus on technology and economic growth boosts market sentiment. Optimism grew after policymakers pledged to meet economic targets, despite ongoing trade tensions with the U.S. Expectations of fiscal stimulus also contributed.
- Country:
- China
Shanghai's stock market soared to a 10-year high on Friday, buoyed by surges in chip-making and artificial intelligence sectors. Market sentiment in Hong Kong was similarly positive at the close of a volatile week, as China's commitment to technology and economic security raised investor morale.
The Shanghai Composite Index increased by 0.4% by midday, reaching its highest point since August 2015. In parallel, the CSI300 Index, composed of blue-chip stocks, climbed 0.7%, eyeing its best weekly performance in two months. Meanwhile, Hong Kong's Hang Seng Index advanced 0.6%.
China's leadership has underscored its intention to become technologically self-sufficient, following a four-day meeting of the Communist Party elite. Financial analysts, including those from Goldman Sachs, view this focus as part of China's strategy for high-quality growth through 2030. Optimism is also fueled by anticipated economic stimulus after current discussions within the Chinese political sphere.
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