FX.co ★ China Stocks Rally as Chip Sector Surges

On Thursday, the Shanghai Composite increased by 0.97% to conclude at 4,008 points, while the Shenzhen Component climbed by 1.73% to reach 13,452 points, marking gains for the second consecutive session. The rally was led by chip manufacturers, spurred by Chinese authorities' directive requiring all new state-funded data center projects to exclusively utilize domestically produced AI chips. This move underscores China’s commitment to tech self-sufficiency. Among the top performers in the chip sector were Cambricon Technologies with a 9.8% increase, Zhongji Innolight rising by 4.2%, Zhejiang Sanhua advancing by 8%, Victory Giant climbing 6%, and Eoptolink Technology gaining 3.1%. Investors are also awaiting China’s trade and inflation data for October, scheduled for release later in the week, to gauge the country's economic momentum. In parallel, Premier Li Qiang reaffirmed this week that China's economy is projected to surpass CNY 170 trillion within five years. He also pledged to further open the consumer market to international companies, following the recent trade agreement with the United States.