Global Markets | China blue-chip index hits 4-year high as tech stocks surge

China's blue-chip index jumped to a four-year high on Wednesday as traders returning from a five-day holiday snapped up tech shares, inspired by persistent global enthusiasm around artificial intelligence, and fresh signs of China's economic resilience.

** Hong Kong stocks also rose, joining a regional relief rally as hopes grew for a U.S.-Iran deal ‌to end ⁠the two-month Middle ⁠East war.

** The blue-chip CSI300 Index advanced 1.6%, hitting the highest since early 2022. The Shanghai Composite Index gained 1.3% and the tech-focused STAR50 Index surged 8%.


** In Hong Kong, the Hang Seng Index rose 0.8%.

** "If you look at global events during the holiday, what people had feared did not happen," Deng Lijun, strategist at Huajin Securities, said, referring to concerns ⁠of renewed ‌U.S. strikes on Iran.

** Instead, China's market reopening was greeted by signs of domestic economic resilience, and strong tech share performance in ⁠global markets, he told a road show.

** Data released on Wednesday showed China's services activity expanded at a faster pace in April.

** Sentiment was also lifted by robust growth in China's tech sector.

** The 2025 net profit of companies listed on Shenzhen's startup board ChiNext and Shanghai's STAR Market grew 20% year-on-year, far outpacing the broader market, reflecting tentative success in China's economic restructuring.

** SWS Research ‌judged that profitability of China-listed companies has bottomed out, underlining the edge in Chinese manufacturing.

** Meanwhile, confidence about China's technology self-reliance grew after media reports that Huawei ⁠expects revenue from its AI chips to jump at least 60% this year.

** An index tracking Chinese chipmakers surged 9% to an all-time high, while investors also piled into AI stocks .

** Energy stocks fell in China amid signs of easing tensions in the Middle East.

** U.S. President Donald Trump said on Tuesday he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran.