Media365
Chinese technology stocks rose on Monday, bucking sell-offs in the Asia-Pacific region, as investors bet that the current blistering run will extend its course on the back of earnings resilience and strong sentiment.
The Star Market 50 Index surged 1 per cent at the break, while the tech-heavy ChiNext 50 gauge rose by as much as 0.9 per cent before trading 0.5 per cent lower. The stabilisation of South Korea’s Kospi index also helped to lift sentiment, with the tech-heavy gauge erasing a loss of as much as 4.7 per cent.
Chinese technology stocks are in focus after the two key gauges last week rose to all-time highs on optimism about positive results from the meeting between Chinese President Xi Jinping and his US counterpart Donald Trump. The two leaders pledged to forge a stable and constructive relationship, with Beijing agreeing to ramp up purchases of US planes and agricultural products.
News that Changxin Memory Technologies, the Chinese chipmaker, took a step closer towards listing on Shanghai’s Star Market also added additional fuel to sentiment. Memory chipmakers have recently dominated the global AI trade on expectations that the buildout of AI infrastructure and data centres will stoke demand for the products of key players including SK Hynix.
Shares of Hynix have almost doubled this year, driving a more than 50 per cent gain in the Kospi index.
Changxin Memory upgraded its financial result submitted to the Shanghai Stock Exchange, which accepted the listing application by the company. Its net income probably surged by as much as twentyfold to 75 billion yuan (US$11 billion) in the first six months, compared with a loss of 4.1 billion yuan a year ago.
