China Stocks Rise on AI, Chip Boost

The Shanghai Composite rose 0.1% to above 3,800 while the Shenzhen Component gained 0.7% to 12,380 on Thursday, with mainland shares recovering part of the prior session’s losses as artificial intelligence and semiconductor stocks extended their rally. Earlier this week, China’s State Council introduced its “AI Plus” initiative aimed at accelerating adoption of AI across technology and consumer sectors. Chinese equities have surged this month on easing US-China trade tensions, expectations of new stimulus and bullish market drivers including stronger fund inflows, higher retail participation and margin buying. Still, profit-taking on Wednesday highlighted investor caution over the sustainability of the rally. Among individual movers, Cambricon Technologies climbed another 3.9%, extending record gains after the AI chipmaker swung to a first-half profit. Other notable advancers included Eoptolink Technology (4.1%), Shanghai Stonehill (4.9%) and Zhongji Innolight (5.1%).