Shanghai's Stock Surge: Tech Self-Sufficiency Ignites Market Optimism

Shanghai's stock index reclaimed the 4,000 mark, driven by optimism in tech self-sufficiency. The Chinese government's push for domestic AI chip usage spurred gains in semiconductor shares. Key indices rose, reflecting investor confidence in China's technological advancements.

Shanghai's benchmark stock index soared past the 4,000 mark on Thursday, buoyed by growing optimism over China's tech self-sufficiency efforts. This trend saw significant gains in semiconductor and AI-related shares, reflecting investor confidence in the country's technological future.

At midday, the Shanghai Composite Index rose by 0.9% to 4,004.25 points, while the blue-chip CSI300 index climbed 1.3%. In a bold move to reduce reliance on foreign tech, the Chinese government mandated that new data centers receiving state funds must use locally-made AI chips, according to Reuters.

This move underscores China's aggressive push towards AI chip self-sufficiency. The tech sector led gains, with the CSI Semiconductor Industry Index rallying over 4%. Investors remain optimistic, anticipating continued sector support amidst escalating valuations.

(With inputs from agencies.)