China technology shares strengthen market position ahead of key data

Fidelity China Special Situations

Chinese technology shares led gains across mainland and Hong Kong markets, with semiconductor and internet companies attracting renewed attention.

The Shanghai Composite rose 0.2% to 4,045, while the Shenzhen Component gained 1.2% to 15,580. Shenzhen outperformed because of its larger exposure to technology and growth companies.

Semiconductor shares were among the strongest performers. Hygon Information Technology rose 4.3%, GigaDevice Semiconductor gained 5.9%, Eoptolink Technology added 2.6%, NAURA Technology increased 2.1% and Semiconductor Manufacturing International Corporation advanced 0.9%.

The gains covered several parts of the technology supply chain, including chip design, semiconductor manufacturing, production equipment and communications components. This wider participation suggests that interest extended beyond a small number of large companies.

The move followed a recovery in global technology shares as confidence returned to artificial intelligence and advanced computing themes. Chinese chip and hardware companies remain linked to this broader investment cycle because demand for computing power, data infrastructure and electronic components can affect their growth outlook.

Hong Kong shares also advanced. The Hang Seng Index rose 0.6% to 24,175.12 and completed its strongest week in nine months. Chinese internet companies were a major source of support.

The mainland and Hong Kong gains came from different parts of the technology sector. Semiconductor and hardware companies led the mainland market, while large internet businesses supported Hong Kong.

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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