While most global stock markets weakened on Wednesday, Chinese equities moved in the opposite direction. Investors focused on the government’s increasing push for technological self-sufficiency and the acceleration of domestic artificial intelligence development, even as global markets remain gripped by uncertainty and geopolitical tension.

Strength was most evident in the technology sector. The STAR 50 Index, often compared to the Nasdaq, climbed as much as 4.3%, marking its strongest weekly gain. The broader CSI 300 Index, which tracks major mainland Chinese stocks, was up around 0.5% by mid-afternoon.

Global markets under pressure from trade tensions

Optimism in China stood in sharp contrast to developments elsewhere. Asian equities overall fell by roughly 0.8%, while the S&P 500 recorded its steepest decline since October. The sell-off followed renewed concerns over escalating trade disputes after U.S. President Donald Trump threatened tariffs on European countries that rejected his proposal to purchase Greenland.

China’s stock market—the second largest in the world—found support in a clear signal from Beijing: accelerate domestic technology development, strengthen artificial intelligence capabilities, and reduce reliance on foreign suppliers. This strategy has helped Chinese equities hold up better than expected over the past year. Strong exports and targeted government support for advanced manufacturing and technology sectors have softened the impact of tariff-related pressures.

Chipmakers lead the rally

Semiconductor companies emerged as the main drivers of gains. Although memory prices were rising across Asia, the most pronounced jumps were seen in China. Shares of Loongson Technology Corp surged by 20%, while Hygon Information Technology Co rose by about 17%.

According to Steven Tseng of Bloomberg Intelligence, the strength in chip stocks is not solely linked to memory price movements. Instead, it reflects a broader trend tied to China’s ambition to build a fully self-sufficient semiconductor ecosystem.

Outlook remains constructive

Despite mainland Chinese stocks hitting a four-year high earlier this month—and subsequent regulatory measures such as tighter margin-financing rules aimed at cooling the rally—investor sentiment remains broadly positive. Chen Shi of Shanghai Jade Stone Investment Management expects equities to continue rising, citing limited domestic investment alternatives. He believes China could outperform global markets again in the coming days.

#china , #stockmarket , #AI , #TechStocks , #Investing

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