Shanghai Stock Surge: Tech Gains Fuel Market Optimism

Shanghai's stock index exceeded the significant 4,000 mark, driven by technological self-sufficiency sentiments. The tech sector led gains across semiconductor and AI stocks. The Chinese government mandates local AI chips for state-backed data centers, signaling a push for tech independence.

In a significant boost to market sentiment, Shanghai's benchmark stock index broke past the notable 4,000 level on Thursday, driven by optimism for technological independence. This major shift saw semiconductor and artificial intelligence shares leading the charge, significantly impacting the market.

The Shanghai Composite index closed up by 1% at 4,007.76 points, buoyed by the tech sector's gains. Notably, the CSI Semiconductor Industry Index experienced its biggest single-day gain in nearly two weeks at 4.6%. China's top chip maker, SMIC, climbed 4.2%, while Cambricon Technologies surged 9.8%. Meanwhile, the CSI AI sector index rose by 3%, and the info tech sector advanced by 2.8%.

In a crucial move towards technological self-reliance, the Chinese government has decreed that new data centers funded by state capital must exclusively employ domestically-produced AI chips. This step is seen as China's most assertive action yet to eradicate foreign tech dependency within its critical infrastructure, reinforcing its strategic aim for AI chip self-sufficiency.

(With inputs from agencies.)