China Stocks Surge as AI Sector Rebounds, Vanke's Debt Casts Shadow

China and Hong Kong's stock markets saw gains driven by the chip and AI sectors, while a property market selloff, primarily linked to developer Vanke's debt delay, partially offset these gains. Optimism around the AI industry persists as Beijing further supports this sector.

China and Hong Kong stock markets made a cautious ascent on Thursday, buoyed by a rebound in chip makers and sectors related to artificial intelligence. However, mounting concerns surrounding property developer Vanke's debt woes led to a downturn in property shares, tempering the overall market progression.

Both the CSI Semiconductor Index and the CSI AI Index witnessed approximately 1% gains, building on recent profitable days. AI chip manufacturer Cambricon Technologies surged as much as 5.6%, marking a two-week peak, with SMIC seeing a 3.6% rise.

Market enthusiasm for domestic AI sectors renewed with reports indicating that ByteDance has been restricted from utilizing Nvidia chips in new data centers. Meanwhile, China Vanke shares plummeted up to 8.8%, affecting China's CSI 300 real estate index, which dipped 4.5%. Hong Kong's Hang Seng Index edged up 0.3% while Beijing's new strategies aim to stimulate consumer consumption and boost economic vitality.

(With inputs from agencies.)