China stocks climb as AI optimism and exports support investor demand

Fidelity China Special Situations

Chinese stocks rose sharply on Monday as investors moved back into technology and manufacturing names linked to artificial intelligence and stronger export demand.

The Shanghai Composite gained 1.1% to 4,225.02, its highest close since June 2015. The CSI 300 rose 1.7% to its highest level in more than four years, showing broader investor appetite for China’s larger listed companies.

Technology stocks led the move. The CSI Semiconductor Index jumped 6.3% to a record high, while the CSI AI Index gained 3.2%. The information technology sector rose 4.4%, also reaching a record level. Growth-focused indices followed, with the Star Index up 4.7% and the ChiNext Price Index rising 3.5%.

The immediate driver was renewed confidence in China’s position in the artificial intelligence supply chain. Investors are focusing on companies that could benefit from demand for chips, components, equipment and manufacturing capacity. China’s scale and cost base remain important advantages as global AI investment continues to rise.

Export data also supported the market. China’s exports rebounded strongly in April, helped by demand from AI-related industries and inventory building by overseas buyers. Exports rose 14.1% year on year to US$359.44 billion, while imports increased 25.3% to US$274.62 billion.

Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.

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