Summary of this week: China’s onshore stocks rise to one-month high as increasing turnover and policy support for chip sector boost risk appetite
Hong Kong’s financial market is closed up to next Tuesday for the Easter holiday.
$SSE Composite Index (800146.HK)$ added 0.4 per cent to 3,324.40 at the break, heading for the highest close since March 3. The benchmark has risen 1.6 per cent this week, its fourth straight weekly gain. The Shenzhen Composite Index advanced 0.8 per cent.
Healthcare and telecoms stock gauges rose the most among the 10 industry groups on the CSI 300 Index, gaining at least 2.7 per cent. Telecoms equipment maker $ZTE Corporation (000063.SZ)$ rallied 9.8 per cent to 36.92 yuan following a report that cited president Xu Ziyang that the company would launch a GPU server that supports ChatGPT.
“Digital China is one of the main themes in the market and that’s not going to change any time soon,” said Zhao Wei, an analyst at Founder Securities. “Stocks will trend up as there is growing optimism that China’s economy will enter a new cycle that will rely on tech as the new driver.”
An increasing amount of capital has been piling into local stocks, with traders riding on the themes of China’s tech self-reliance and ChatGPT frenzy. Combined daily turnover surpassed 1 trillion yuan (US$145 billion) on the Shanghai and Shenzhen exchanges for three consecutive days through Thursday.
Further adding to the upbeat sentiment was a report which cited the chief of the state-owned asset regulator that the agency would ramp up policy support for the semiconductor industry in respect to talent and capital, during a visit to a local chip company on Thursday.
Elsewhere, $Southchip Semiconductor Technology(Shanghai) (688484.SH)$ Southchip Semiconductor Technology jumped 39 per cent to 55.65 yuan on the first day of trading in Shanghai.
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whqqq : I hope they will maintain their upward trend.