China Stocks Rally Led by AI Firms Amid Regulatory Calm

China's stock market experienced gains, primarily driven by artificial-intelligence companies, following regulatory interventions to temper excessive market enthusiasm. The CSI300 and Shanghai Composite Indexes made moderate progress, while Hong Kong's Hang Seng dipped slightly. Onshore AI stocks rebounded with semiconductors, amid ongoing regulatory scrutiny of abnormal trading activity.

China's stock market saw an uptick on Wednesday, largely propelled by artificial-intelligence enterprises. This rise came after regulatory bodies intervened to mitigate the month's rampant market enthusiasm. Meanwhile, Hong Kong shares experienced a slight downturn, illustrating a more cautious investor sentiment.

The blue-chip CSI300 Index and the Shanghai Composite Index showed moderate increases during the trading day. Onshore AI stocks recorded a 2.2% hike following recent dips, with semiconductor stocks climbing nearly 3%. Non-ferrous metals also advanced by 1.7%, signaling a diversified interest in the market.

Despite positive movements, investors remain wary. A UBS survey highlights a strong interest in metals-related sectors, yet also notes concerns over the valuation of A-share tech stocks. Regulatory measures continue to address abnormal trading practices, underscoring a cautious approach to market growth.

(With inputs from agencies.)