China stocks rebound as tech shares track broader Asian rally

By Reuters News09:20 (UTC), 28 October 2026 Updated

By Summer Zhen

HONG KONG, Oct 28 (Reuters) - China and Hong Kong stocks snapped a two-day slide on Wednesday, as AI-related shares tracked a broader rally across Asian markets following chipmaker SK Hynix's upbeat earnings.

** At the close, China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC were up 0.9%.

** Hong Kong's benchmark Hang Seng .HSI rose 0.2%, while the Hang Seng Tech index .HSTECH jumped 1.4%.

** South Korean chipmaker SK Hynix 000660.KS reported a more than sevenfold rise in quarterly operating profit, beating expectations and rekindling investor sentiment towards the AI-linked trade.

** Among A-shares, optical transceiver firms surged, with Zhongji Innolight 300308.SZ and Eoptolink Technology 300502.SZ up more than 10% and 8%, respectively.

** Sectors including chip-making .CSI932087, 5G communications .CSI931079 and robotics .CSIH30590 also rallied.

** Robot maker Yushu Technology, also known as Unitree, 688836.SS closed 9% higher ahead of its first quarterly results after its Shanghai listing.

** Adding to the optimism, China's CXMT plans to start production of HBM3E, an advanced type of high-bandwidth memory chip used with AI processors, Reuters reported, citing sources.

** In Hong Kong, an index tracking AI-related firms .HSSCAI rose 5%.

** On the flip side, investors sold liquor stocks on worsening sales. Baijiu maker Wuliangye 000858.SZ lost 4% after its third-quarter profit dropped 48%.

** China's tech shares had come under heavy selling pressure since July amid concerns over AI demand and curbs on Chinese exports.

** Weak domestic demand has added to investor caution, fuelling calls for fresh stimulus measures to restore market confidence.

** Richard Tang, head equity research analyst for Asia at Julius Baer, said the so-called national team of state-backed funds has clearly stepped up its purchase of A-shares in recent sessions, raising hope that market stabilisation may be in sight.

** The smaller Shenzhen index .SZSC was up 1.98%, the start-up board ChiNext Composite index .CNT was higher by 3.4% and Shanghai's tech-focused STAR50 index .STAR50 was up 2.45%.