SHANGHAI: China stocks rose on Tuesday, with artificial intelligence (AI) firms leading the gains, helped by the AI boom in the United States, while investors awaited further policy signal from Beijing’s upcoming parliamentary meeting.
China’s blue-chip CSI 300 Index closed up 1.2%, while the Shanghai Composite Index climbed 1.3%.
Hong Kong benchmark Hang Seng Index rose 0.9%, and the Hang Seng China Enterprises Index added 1.5%.
The broad Asian shares slipped, with slightly warmer-than-expected Japanese inflation putting investors on guard ahead of price data due in Europe and the US this week, though bitcoin extended gains on signs that institutional buyers are circling.
Artificial intelligence companies jumped 5.2%, helped by the generative artificial intelligence boom in the US as Nvidia hit $2 trillion in market value for the first time after the AI pioneer reported a bullish financial update.
Market talks of policy support for China’s homemade AI servers also boosted sentiment.
Shares in communications equipment and automobiles jumped 6.5% and 4%, respectively.
Foreign investors bought a net 12.2 billion yuan ($1.70 billion) of Chinese shares via the Stock Connect, following two days of selling.
In Hong Kong, tech giants jumped 3.2%,
with Semiconductor Manufacturing International Corp up 10.2%.
China’s blue-chip CSI 300 has rebounded 12.4% from a recent low early this month on authorities’ measures to spur economic growth and boost market confidence.
Market participants are awaiting authorities’ next policy move as China’s rubber stamp parliament - the National People’s Congress - begins its annual meeting on March 5.
Key topics to monitor include discussions about the government’s “new model” for the property sector, local government financing and fiscal reforms, as well as other demand-side stimulus such as support to consumption, Goldman Sachs said in a note.
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