Semiconductor rally lifts China stocks to 10-year high

Sep 18, 2025, 12:09 GMT+7
Reuters - China stocks extended gains to touch another 10-year high on Thursday, as domestic artificial intelligence chip-related developments and a report that local tech giants were banned from buying Nvidiachips boosted semiconductor shares.
** The Shanghai Composite Indexhit 3899.96 in early trade, its highest level since August 2015.
** By the lunch break, China's blue-chip CSI300 Indexclimbed 0.32%, while the Shanghai Composite Indexgained 0.45%.
** Semiconductor firms jumped 6.3% while AI-related stocks gained more than 3% after the Financial Times reported that China's internet regulator has ordered top tech firms to halt purchases of U.S.-based Nvidia's AI chips.
** Chinese tech giant Huaweiplans to launch the world's most powerful computing node, Atlas 950, in the fourth quarter of this year.
** Following the overnight U.S. Federal Reserve's 25-basis-point interest rate cut, China's central bank left a key rate unchanged on Thursday, as authorities appear in no rush to ease monetary settings.
** Hong Kong's central bankits base rate charged via the overnight discount window by 25 bps to 4.50%, tracking the Fed move.
** The benchmark Hang Seng indexsurpassed the 27,000 mark for the first time since July 2021, before edging down 0.18% by midday.
** The Hang Seng Tech Indexrose 1.04%.
** "China Equities (will likely) be supported by reflation-linked policy easing, AI self-sufficiency initiatives, and continued liquidity support from authorities," said Ray Sharma-Ong, deputy global head of multi-asset bespoke solutions, at Aberdeen Investments.
** Goldman Sachs analysts said in a note that they stay overweight on both Mainland A-shares and Hong Kong-listed Mainland shares, forecasting an 8% and a 3% upside, respectively, in 12 months.
** The smaller Shenzhen indexadvanced 0.7%, the start-up board ChiNext Composite indexrose 0.49% and Shanghai's tech-focused 50 indexgained 3.4%.

Sumber : Reuters