China: AI stocks drive CSI300 index to highest since March 2022
China's CSI300 Index closed up 2.3%, near its highest level since March 2022. The rally was driven by AI stocks, amid concerns over potential US restrictions on Chinese innovative drugs.
Shanghai's main index also climbed, while Hong Kong's Hang Seng dipped a bit.
AI shares in China soar
AI shares in China soared 6.8%—their biggest single-day jump since October 18, 2024.
Standouts like Cambricon Technologies (+9%), Zhongji Innolight (+14%), and Eoptolink Technology (+13%) led the charge.
The STAR50 Index, tracking China's hottest tech and AI names, is now up a hefty 34% this year.
Hong Kong tech stocks mixed
Hong Kong tech stocks were more mixed; most stayed flat but Alibaba edged up after news of a $3.2 billion bond sale.
Still, investors are clearly chasing tech and AI opportunities in China despite ongoing friction with the US.
Chinese biotech shares take early hit
Chinese biotech shares took an early hit on fears of possible new US import bans but trimmed losses by day's end—down just 0.8%.
Analysts aren't too worried yet, pointing out that similar crackdowns haven't stuck before.