The Shanghai Composite Index added 0.3% to close at 3,660 on Wednesday, while the Shenzhen Component Index advanced 1.4% to 11,407, both rebounding from sharp losses in the previous session on renewed optimism toward artificial intelligence–related shares. Sentiment improved as investors looked ahead to upcoming earnings reports from US technology heavyweights Alphabet Inc., Microsoft Corp. and Amazon.com Inc.
At the same time, domestic hardware leaders such as Zhongji Innolight and Victory Giant Technology are under pressure to deliver strong results, as investors seek earnings that can justify current valuations. Technology stocks led the market higher, with Cambricon Technologies up 3%, NAURA Technology gaining 3.6%, EOptolink Technology rising 3.2%, Zhongji Innolight advancing 2.8%, and SMIC climbing 1.4%.
Investors are also closely following the ongoing Fifth Plenum of the Communist Party, which concludes on Thursday, for policy guidance and greater clarity on China’s medium- and long-term economic priorities.
