FX.co ★ China Tech Stocks Rally as US Eases Chip Software Curbs

On Thursday, Chinese technology stocks experienced an upswing, as evidenced by the Shenzhen Component increasing by 0.5% to surpass 10,460. This surge followed news that the United States has eased some export restrictions on chip design software to China. Previously, in May, U.S. authorities mandated that several chip design software firms obtain licenses before exporting their tools and semiconductor-related chemicals to Chinese entities. The relaxation of these restrictions is part of the recently unveiled U.S.-China trade agreement, which includes measures to resume trade in rare earths and advanced technologies. Leading the market's rise were chip-related stocks, with significant gains recorded by companies including Foxconn Industrial, which rose by 8%, Luxshare Precision by 3.8%, Eoptolink Technology by 1.7%, and Victory Giant by 3.9%. However, data revealed that China's services sector growth decelerated to a nine-month low in June, which contrasted with the unexpectedly robust rebound in manufacturing activity earlier in the week. This dichotomy highlights the persistent uncertainties within the broader economy.