China's Chip Stocks Resilient Amid New U.S. Curbs

Despite new U.S. restrictions, China's chip-making stocks saw slight gains, while the broader market was weighed down by financial concerns. The U.S. targeted 140 companies to curtail China's tech capabilities, but experts believe firms may receive state support as the economic outlook dimmed.

China's semiconductor industry has shown resilience against the latest U.S. sanctions, registering modest gains in the stock market even as financial sectors faced pressure due to falling interest rates. This marks the third major U.S. crackdown in recent years aimed at restricting China's tech advancements.

Initially met with concern, the restrictions were not as severe as anticipated, according to industry analysts. Tai Hui of J.P. Morgan Asset Management highlighted that China's chip sector is becoming increasingly accustomed to such challenges and may receive state backing to mitigate potential impacts.

While chip designers and toolmakers like Piotech saw slight upticks, broad market challenges persist. Economic uncertainties loom, highlighted by weak non-manufacturing spending forecasts. Meanwhile, China's financial markets grapple with historically low bond yields and slow stock performance, as the property sector's woes continue to cast long shadows.

(With inputs from agencies.)