China stocks nudge higher as global chip rally signals sector tailwind

Fidelity China Special Situations

Chinese equities edged up on Wednesday, with the Shanghai Composite posting a small gain and the Shenzhen market also closing higher. The modest rise follows strength in global semiconductor stocks, which are increasingly setting the tone for broader equity markets.

ASML led the momentum after announcing record quarterly orders, driven by demand for its advanced lithography machines used in AI chip production. The company’s decision to increase its dividend and expand its share buyback programme was well received by the market and interpreted as a clear signal of confidence in long-term demand. SK Hynix added further support with record profits, underpinned by high bandwidth memory sales into AI server markets. Both stocks rose, and their results triggered a broader rally in chip names including Nvidia and Micron.

The global move lifted sentiment ahead of key U.S. tech earnings and added support to risk assets more broadly. Futures on major U.S. indices moved higher, with investor positioning tilting back toward growth sectors.

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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