China's Tech Stocks Rebound Amid Easing Geopolitical Tensions

China's stock market experienced a rebound, led by tech shares, as geopolitical tensions eased. The CSI300 and Shanghai Composite Index posted gains, while Hong Kong stocks followed suit. Analysts predict a continued tech rally despite concerns over an overheating AI sector, with Alibaba and Xiaomi showing strong performances.

In a turnaround from recent lows, China's stock market witnessed a notable rebound on Tuesday, primarily driven by tech shares. This rally comes amid signs of easing geopolitical tensions, providing a boost to market sentiment.

The recuperation was noteworthy in China's blue-chip CSI300 Index, which advanced by 1%, while the Shanghai Composite Index posted a 0.9% gain. Hong Kong's benchmark Hang Seng Index also saw a rise of 0.7%, underscoring a regional uplift.

Analysts remain optimistic about the continuation of this tech rally. Despite apprehensions about the AI sector overheating, experts argue that the fundamentals in the U.S. AI industry are steady, providing expansive valuation prospects for Chinese companies. Significant stock movements included Alibaba, with a 2.1% rise, buoyed by upcoming earnings, and Xiaomi, which closed up 4.4% after significant market activity by its founder.

(With inputs from agencies.)