Chinese technology stocks continued to rally on Friday, as investors bet that the country's tech sector is set for a boom following DeepSeek's advances in artificial intelligence. Internet and semiconductor-related shares on the Chinese stock market kept surging with gains of more than 4 percent on Thursday.
The Science and Technology Innovation Board of the Shanghai Stock Exchange (SSE), also known as the SSE STAR market, are seen by investors as the backbone of the Chinese capital market.
"We can see is that our country's independently developed models, which, relatively speaking, have more advantages than others, have attracted global attention. Technology stocks are relatively more flexible in terms of the funds involved and are richer in concept. This has ensured them the edge to perform better with greater flexibility," said Wang Peicheng, senior analyst of macro strategy at Dongzheng Derivatives Research Institute.
Trading on the Shanghai and Shenzhen stock exchanges totaled more than 1.55 trillion yuan (about 212.7 billion U.S. dollars) on Friday, more than 200 billion yuan (27.4 billion U.S. dollars) compared with the previous day.
The indices of smaller companies, such as the ChiNext index which tracks China's Nasdaq-style board of startup enterprises, showed a trend of strong growth than the Shanghai Composite Index and the Shenzhen Component Index for blue chip companies.
"A bullish sentiment has been aroused across the whole market. This is because the technology sector, or some funds on the sidelines, have become players in the market. This, and coupled with the capital preference for the high elasticity of prices in the tech sector, has led to the robust performance of shares and indexes of smaller companies than heavyweight indexes in recent days," said Zhou Zheng, a senior investment advisor at Aijian Securities.
Chinese tech stocks keep rallying on bullish sentiment fueled by DeepSeek
