China stocks rebound on tech rally, tracking Asian markets

HONG KONG – Chinese and Hong Kong stocks rallied on Wednesday, ending a two-day decline as technology shares mirrored a broader market surge across Asia following strong earnings from chipmaker SK Hynix. Both the China A-share CSI300 Index and Shanghai Composite Index rose 0.7% by midday trading. Hong Kong's Hang Seng Index gained 0.4%, while the Hang Seng Tech sub-index jumped 1.8%.

SK Hynix's better-than-expected quarterly profits, up more than sevenfold, reignited investor confidence in AI-linked sectors. In Shanghai-listed A-shares, sectors such as robotics, chips and 5G communications surged 5.2%, 4.5% and 3.8% respectively, driving the overall gains. Unitree Technology, a leading robot maker, saw its shares jump 12% ahead of the company's debut quarterly report after listing in Shanghai.

Conversely, liquor stocks took a hit as investors reacted to weak sales. Baijiu producer Wuliangye saw its shares fall 5.7% after reporting a 48% drop in third-quarter profits. Tech shares had faced heavy selling pressure earlier due to concerns over AI demand and export curbs, and weak domestic demand had intensified calls for fresh stimulus measures to restore market confidence.

Richard Tang, head equity research analyst for Asia at Julius Baer, noted that a group of state-backed funds had stepped up purchases of A-shares in recent sessions, bringing optimism that market stabilization could be on the horizon. The smaller Shenzhen Composite Index rose 2.06%, the ChiNext Composite index increased by 3%, and Shanghai's STAR50 tech-focused index gained 2.51%.