The Shanghai Composite Index rose 0.8% to above 4,110 on Tuesday, while the Shenzhen Component advanced 1.3% to 14,280, recouping losses from the previous session as Chinese markets reopened after the extended Lunar New Year break. Sentiment was supported by expectations of lower US tariffs following a US Supreme Court decision that struck down former President Trump’s reciprocal tariff measures, helping to offset the impact of another AI-led selloff on Wall Street.
Although Trump has threatened to raise global tariffs from 10% to 15% in response to the ruling, China is still projected to face a lower average tariff burden on its exports. On the domestic front, the People’s Bank of China left its 1-year and 5-year loan prime rates unchanged at 3% and 3.5%, respectively, for the ninth consecutive month.
Technology and AI-related stocks led the advance, with notable gains in Zhongji Innolight (3.8%), Suzhou TFC (13.4%), Range Intelligent (15.9%), Eoptolink Technology (1.6%) and Huagong Tech (10%).
