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

On Thursday, Chinese technology stocks witnessed a surge, as evidenced by the Shenzhen Component Index rising 1.17% to conclude at 10,535. This uptick was fueled by reports indicating that the United States has relaxed certain export restrictions related to chip design software for China. Previously, in May, US regulators mandated that several semiconductor software companies secure licenses before exporting essential tools and materials to Chinese enterprises. This recent policy change is part of a wider US-China trade agreement that encompasses measures to resume trade in rare earths and advanced technologies. The primary beneficiaries of this shift were chip-related stocks, with Foxconn Industrial jumping 10%, Luxshare Precision advancing 5.5%, Suzhou Dongshan increasing by 9.3%, Eoptolink Technology climbing 3.7%, and Victory Giant rising 5.9%. Nonetheless, recent data revealed a deceleration in China's services sector growth to a nine-month low in June, which tempered the optimism generated by an unexpectedly robust rebound in manufacturing observed earlier in the week, underscoring persistent macroeconomic uncertainties.