HONG KONG, – Chinese shares edged up on Thursday, buoyed by regulatory support for the auto sector and renewed optimism in AI-related stocks, while Citi upgraded China equities, citing improved earnings trends and structural growth themes.
** At market close, the Shanghai Composite index climbed 0.4% to 3,516.83, and China’s blue-chip CSI300 index was up 0.7%.
** Leading gains were AI-related shares that added 1.8% and the info tech sector that jumped 2.1%, as news that Nvidia will ramp up supply of H20 chips to China lifted sentiment.
** Auto stocks edged up 1.7% after authorities pledged to regulate the excessive competition and intense price wars in the electric vehicle industry.
** In Hong Kong, the benchmark Hang Seng Index closed flat but held near a four-month high.
** The biotech and healthcare sectors rallied more than 5% each after U.S. President Donald Trump dialled down his harsh tone towards China, offering fresh optimism about the trade deal prospects.
** Analysts at Citi upgraded China equities to “overweight”, citing comparatively improved earnings outlook, reasonable valuations, and structural themes such as AI and corporate governance reforms.
** Internet names are among the top picks, as recent headlines about resumed sales of AI chips by U.S. companies to China could be incrementally positive, the analysts said.
** “While the domestic economic picture remains mixed, a potential acceleration in support for domestic demand could be an upside catalyst,” they said in a note on Thursday.
This article was generated from an automated news agency feed without modifications to text.
