Two days of selling had left China’s domestic markets near a tipping point, but the tone has shifted quickly and decisively. The rebound was led by a sharp and highly specific resurgence in artificial intelligence-linked names. This pivot is inviting renewed attention from investors who had, until recently, remained wary of China’s market volatility and policy overhangs.
At the centre of this renewed momentum is the dramatic debut of a homegrown AI chipmaker, whose first day of trading in Shanghai saw its valuation multiply severalfold. This comes as Beijing intensifies support for domestic semiconductor capacity, with recent listing approvals suggesting that policymakers are actively cultivating depth in the AI supply chain.
Momentum also extended beyond a single stock. AI hardware, infrastructure platforms and upstream enablers of compute capacity all participated in the rally. Hong Kong’s tech-heavy benchmark picked up steam, reflecting renewed flows into names with perceived alignment to state strategy. The rally appears to have drawn a line under the recent pullback, which had been marked by declining foreign participation and renewed concern about corporate earnings quality.
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.
