Shanghai stock benchmark reclaims 4,000 level on domestic chip optimism

Nov 6, 2025, 11:47 GMT+7
By Jiaxing Li
Reuters - Shanghai's benchmark stock index reclaimed the psychologically important 4,000 level on Thursday, as optimism over tech self-sufficiency boosted semiconductor and artificial intelligence-related shares.
** At the midday break, the Shanghai Composite indexwas up 0.9% at 4,004.25 points. The blue-chip CSI300 indexwas up 1.3%.
** The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made AI chips, Reuters reported.
** This could be one of China's most aggressive steps yet to eliminate foreign technology from its critical infrastructure and achieve its quest for AI chip self-sufficiency.
** Tech sectors led the gains. The CSI Semiconductor Industry Index (.CSI931865) rallied more than 4%, with China's top chip maker SMIC up 3.9% and Cambricon Technologiesrising more than 6%.
** The CSI AI sector indexand the info tech sectorboth gained roughly 2%.
** "Fresh optimism about China's chip self-sufficiency and upcoming technological breakthroughs would continue to support the entire sector's performance despite the rich valuation. There's more upside to go," said Kenny Ng Lai-yin, securities strategist at China Everbright Securities International.
** In Hong Kong, the benchmark Hang Seng Indexwas up 1.6% at 26,361.40. The Hang Seng Tech Indexjumped more than 2%.
** Cathay Pacific Airwaystouched a three-month high after announcing it was buying back the entire remaining stake from Qatar Airways.
** Pony AI and WeRide slid as the Chinese autonomous-driving developers started trading in Hong Kong.
** Investors are also awaiting China's October trade data, due on Friday. Forecasts compiled by Reuters show that exports denominated in U.S. dollars likely slowed to a year-on-year growth rate of 3.0%.

Sumber : Reuters