BEIJING – Chinese stocks rallied as Beijing set an ambitious 5% economic growth target and pledged stronger support for technology sectors at the National People’s Congress (NPC).
The MSCI China Index climbed 2.5%, marking its first gain in six years on an NPC opening day. The CSI 300 Index rose 0.5%, while Hong Kong’s tech-heavy index surged 4.1%, driven by gains in chipmakers, quantum computing, and AI-related firms.
Leading the rally, Hua Hong Semiconductor jumped 8.7% in Hong Kong, and Jiangsu Hengli Hydraulic gained 5.7% in Shanghai. Investors cheered Premier Li Qiang’s commitment to funding emerging industries, including biomanufacturing, AI, and 6G technology.
Market optimism grew despite ongoing US-China trade tensions and currency fluctuations. The offshore yuan dipped 0.3%, while China’s 10-year bond yields fell slightly. Analysts, including Gary Tan of Allspring Global Investments, noted better-than-expected government support for the tech sector, fueling investor confidence in Hong Kong’s tech-heavy markets.
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