CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

China stocks rebound on tech rally, tracking Asian markets

By Reuters News

By Summer Zhen

HONG KONG, Oct 28 (Reuters) - China and Hong Kong stocks rebounded on Wednesday, snapping a two-day losing streak, as gains in technology shares tracked a broader rally across Asian markets following chipmaker SK Hynix's upbeat earnings.

** Both China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC climbed 0.7% by the lunch break.

** Hong Kong benchmark Hang Seng .HSI was up 0.4%, while Hang Seng Tech .HSTECH jumped 1.8%.

** SK Hynix's better-than-expected earnings rekindled investor sentiment towards the AI-linked trade. The South Korean chipmaker reported a more than sevenfold rise in quarterly operating profit.

** In A-shares, robot .CSIH30590, chip-making .CSI932087 and 5G Communications .CSI931079 sectors advanced 5.2%, 4.5% and 3.8% respectively to lead the gains.

** Shares in leading robot maker Unitree Technology 688836.SS surged 12% ahead of the firm's release of its first quarterly result after its Shanghai listing.

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

** On the flip side, investors sold liquor stocks on worsening sales. Baijiu maker Wuliangye 000858.SZ lost 5.7% after its third-quarter profit dropped 48%.

** China's tech shares had come under heavy selling pressure 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 a market stabilisation may be in sight.

** The smaller Shenzhen index .SZSC was up 2.06%, the startup board ChiNext Composite index .CNT was higher by 3% and Shanghai's tech-focused STAR50 index .STAR50 was up 2.51%​.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.