China stocks hit 11-year high on AI optimism, exports rebound

HONG KONG: Chinese stocks hit a near 11-year high on Monday, supercharged by a strong tech rally driven by renewed AI optimism and export strength. At the midday break, the benchmark Shanghai Composite index was up 0. 9% at 4, 219. 13, after touching its highest level since July 1, 2015, in earlier trade. The blue-chip CSI 300 Index was up 1. 4%, its highest in more than 4 years. In Hong Kong, the Hang Seng Index was down 0. 3% at 26, 318. 37. Tech shares powered the markets higher, buoyed by a broader regional rally as optimism about AI grew. The CSI Semiconductor Index surged 7. 3% to a record. The CSI AI Index climbed 3% and the info tech sector index surged 4. 8%, also touching all-time highs. The tech-focused Star Index was up 5. 3%, while ChiNext Index added 3%. China’s export growth rebounded strongly in April as factories raced to meet a wave of orders from AI-related industries and other buyers seeking to stockpile components amid the Iran conflicts. Meanwhile, the country’s producer price index (PPI) surpassed expectations in April to hit a 45-month high, while consumer inflation also accelerated as global energy costs remained elevated, data released on Monday showed. “Growing global AI computing demand will continue lifting semiconductor-related exports going forward, ” with China’s manufacturing cost advantage becoming more pronounced, analysts at CITIC Securities wrote in a note. Elsewhere, investors are also watching the upcoming meeting between U. S. President Donald Trump and Chinese President Xi Jinping, where Iran, Taiwan, and artificial intelligence are set to be discussed. Amid escalating tensions across the world, this summit could be a step where the two dominant powers manage their rivalry, maintain the uneasy calm, and avoid a total breakdown in relations through high-level personal diplomacy, analysts at Nomura said.

Read full story on Business Recorder