Chinese Stocks Rally for Fifth Consecutive Session, Reach Five-Week Highs Driven by AI Shares

Chinese stocks continued their upward momentum on Tuesday, marking a fifth consecutive session of gains and pushing major indexes to their highest levels since last November. Renewed optimism in the artificial intelligence sector and increased bets on supportive economic policies underpinned the rally.

The Shanghai Composite Index rose about 0.3% to nearly 3,930 points, while the Shenzhen Index climbed 0.6% to 13,410 points. The CSI 300 Index, comprising leading companies listed in Shanghai and Shenzhen, reached 4,641 points - its highest in approximately five weeks.

Technology stocks led the gains, following Wall Street's positive performance and a stronger risk appetite for AI companies. The market was further supported by reports that Nvidia intends to begin shipping its second most powerful AI chips to China by mid-February, boosting local sentiment.

Among the top performers, Foxconn Industrial rose 3.9%, Cambricon Technologies gained 3.3%, and NAURA advanced 3.2%, alongside notable gains in several semiconductor equipment and technology firms.

This positive performance comes during a shortened trading week, supported by expectations of continued US interest rate cuts next year and the absence of major negative catalysts, allowing investors to strengthen positions in high-growth stocks.

On a medium-term basis, data showed the CSI 300 Index gained nearly 4.3% over the past four weeks and rose about 16.5% year-on-year, reflecting a gradual improvement in investor confidence.

Markets are now looking ahead to the upcoming meetings of the Standing Committee of the National People's Congress for further signals of government support or stimulus measures that could reinforce the recovery momentum in the world’s second-largest economy.