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China stock bulls return for best gain in two months on rally in chipmakers, tame US inflation data
- Benchmarks in Shanghai and Shenzhen bourses logged the biggest gains in at least two months with at least 2.4 per cent rallies
- Hang Seng Index climbs 1.7 per cent, on track for third straight day of rebound, as chip makers surge on a plan to tackle export and supply issues
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Mainland China equities rose by the most in at least two month as markets in the region tracked overnight gains on Wall Street following an encouraging US inflation report. Chipmakers surged in Hong Kong on a US-China plan to fix supply shortage.
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The CSI 300 Index, which tracks some of the biggest stocks in Shanghai and Shenzhen, climbed 2.5 per cent in its biggest gain since January 12. The Shanghai Composite added 2.4 per cent in a run-up not seen since October 12. The tech-heavy ChiNext gauge in Shenzhen appreciated 2.6 per cent, the best in more than a week.
Liquor distiller Kweichow Moutai rose 4 per cent to 2,048 yuan in Shanghai, while Ping An Insurance added 3.7 per cent to 86.36 yuan.
The Hang Seng Index capped a three-day rally by adding 1.6 per cent to 29,385.61. Technology bellwethers powered gains as the Hang Seng Tech Index surged 5.2 per cent, the most since January 20. Short-video app operator Kuaishou shot up 11 per cent to HK$307.80, while delivery giant Meituan soared 8.7 per cent to HK$344.60.
Shanghai Fudan Microelectronics, which sells and designs semiconductor devices, and industry peers Hua Hong Semiconductor and state-c0ntrolled SMIC all soared by more than 10 per cent.
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The China Semiconductor Industry Association, a state-backed group of 774 industry players, said on Thursday that it has set up a working group with technology companies in the US to create an avenue for communication on issues such as “export controls, supply chain security”
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