China stocks hit 11-year high on AI optimism, exports rebound; HK shares muted

Chinese stocks closed near an 11-year high on Monday, supercharged by a strong tech rally driven by renewed AI optimism and export strength, while Hong Kong shares were muted. 

At market close, the benchmark Shanghai Composite index was up 1.1 percent at 4,225, its highest since June 30, 2015.

The Shenzhen Stock Exchange Component Index also jumped 2.2 percent to 15,899 points. 

The blue-chip CSI 300 Index was up 1.7 percent, its highest in more than four years.

Tech shares powered the markets higher, buoyed by a broader regional rally as optimism about AI grew.

The CSI Semiconductor Index surged 6.3 percent to a record high. The CSI AI Index climbed 3.2 percent and the info tech sector index surged 4.4 percent, also touching all-time highs.

The tech-focused Star Index was up 4.7 percent, while ChiNext Price Index added 3.5 percent.

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.

"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 (6030) wrote in a note.

In Hong Kong, the benchmark Hang Seng Index inched up 13 points to 26,406 at the close, while the tech gauge was flat at 5,106 points.

The market turnover was HK$288.5 billion.

Reuters and staff reporter

 

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