Chinese stocks closing higher on Friday indicates more participation and broader confidence in the market, said China Global Television Network (CGTN) analyst Timothy Pope.
The benchmark Shanghai Composite Index up 1.02 percent to 3,940.04 points. The Shenzhen Component Index closed 1.42 percent higher at 14,311.01 points. Also, the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.35 percent to close at 3,563.12 points.
The rally can be contributed to several reasons.
"This week started with a rout for tech shares, but that pretty quickly turned into a relief rally. And it got another boost today from better-than-expected trade data, which had exports looking particularly strong, helped in part by the global AI buildout," Pope said.
He then said that there is no particular sector that outstandingly led the pack.
"The market has rebounded from Monday's sell-off, but investors still can't seem to decide which sector they should be chasing. The favorite can change almost by the hour at the moment, with uncertainty still hanging over the durability of the AI rally and the valuations of some of the big players there. Still, turnover was up again today. So at the very least, we're seeing more participation and broader confidence -- just in the market as a whole, rather than in any one particular sector or theme," said Pope.
China stocks rebound show broader confidence to market: analyst
