FX.co ★ China Stocks Rally for 5th Session

The Shanghai Composite Index increased by 0.3% to approximately 3,930, while the Shenzhen Component Index advanced by 0.6% to 13,410 on Tuesday. This marked the extension of a five-session rally, pushing mainland markets to a four-week peak, bolstered by renewed optimism in the AI sector. The upward trend was led by local technology stocks, following a positive session on Wall Street where key US tech companies showed recovery from recent fluctuations. Investor sentiment was further lifted by news of Nvidia's intention to commence shipping its second most potent AI chips to China by mid-February. Leading the gains were Foxconn Industrial, which rose by 3.9%, Cambricon Technologies with a 3.3% increase, NAURA advancing 3.2%, and Zhongji Innolight climbing 0.9%. The broader market also saw gains during this abbreviated trading week, spurred by anticipations of further interest rate reductions by the Federal Reserve and the absence of significant market-disrupting events. Market participants are now keenly observing the National People’s Congress Standing Committee meeting for any indications of additional policy measures.