The Shanghai Composite Index gained 0.4% to close at 3,945 on Monday, while the Shenzhen Component Index advanced 0.9% to 13,636. Both benchmarks recovered from last week’s losses, driven primarily by technology stocks. The sector’s strength tracked a strong rally in U.S. tech shares on Friday, as optimism surrounding OpenAI’s latest AI model boosted global sentiment toward chipmakers and AI-related companies. Among the notable gainers were Cambricon Technologies (up 1.2%), SMIC (1.7%), Shengyi Technology (2.7%), Zhongji Innolight (3.5%), Eoptolink Technology (3.1%), and NAURA Technology (2.6%).
At the same time, China is injecting CNY 300 billion (about $45 billion) into its largest banks and insurers in what amounts to its most significant financial-sector recapitalization in nearly 20 years. The move is aimed at reinforcing balance sheets and supporting credit expansion as the economy shows signs of slowing.
