Chinese stock markets closed higher on Monday, benefiting from the performance of tech companies.
The benchmark Shanghai Composite Index was up 0.96 percent to 4,152.57 points, and the Shenzhen Component Index closed 1.66 percent higher at 15,856.61 points at closing.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.1 percent to close at 4,021.16 points.
Timothy Pope, a China Global Television Network (CGTN) market analyst, recapped the day's market developments from Shanghai.
"Today, the Chinese mainland market rose. We saw the Shanghai Composite Index up by almost one percent and the Shenzhen Component by 1.7 percent. Huawei was really helping keep up the momentum for chipmakers today after its announcement of a breakthrough in chip design. It says it expects that it will be able to make chips which are equivalent to a transistor density of 1.4 nanometers within five years. For those of us who aren't experts on chips, that would put it close to the global market leaders. But possibly the more interesting is how the company plans to do this while restricted from accessing the most powerful chipmaking equipment that's out there. It has a new principle for making chips faster that doesn't just rely on making them smaller and smaller, which has been the traditional approach. The markets found that quite exciting and an index tracking Chinese semiconductor shares gained 7.1 percent today, while the STAR 50 Index rose almost 6 percent," he said.
"There was also cautionary news on the AI front though, with Bloomberg reporting on Friday that the regulators in China and the stock exchanges in Shanghai and Shenzhen are seeking some more disclosure from companies and funds about their use of, and exposure to AI. AI is of course now providing a lot of the market energy at the moment, and what we've seen is either market rumors, or sometimes a comment by a company executive or in a statement about AI, and that provokes a stock surge, but it later turns out that this sort of rumors was wholly or largely unjustified. According to Bloomberg, the regulators want to make sure that the disconnect between valuations and earnings that we are seeing in some cases doesn't get out of hand, and really to make sure these sorts of rumors aren't sending stocks with no meaningful AI links sky high," said Pope.
China shares close higher on tech rally
