China’s stock market experienced a minor rise on Wednesday, primarily driven by artificial intelligence companies. Investor sentiment showed signs of stability after a wave of regulatory cooling measures this month, leading to an upswing in Hong Kong shares.
Both the blue-chip CSI300 Index and the Shanghai Composite Index closed 0.1% higher. Meanwhile, Hong Kong’s Hang Seng index advanced 0.4%. Onshore AI stocks particularly benefited, increasing by 2.2% after recent declines, while the semiconductor sector climbed 3.7%. Technology giants listed in Hong Kong also saw a 1.1% rise.
Despite the gains, UBS analysts warned of concerns over high valuations and risk profiles for China A-share tech stocks following a significant rally this year. Regulatory bodies in Shanghai and Shenzhen have responded by implementing measures to curb market excesses, taking action against practices such as price manipulation and issuing misleading statements by listed companies.