Chinese stocks gained, with technology firms driving the advance after Beijing vowed more support and set an ambitious economic growth target at the nation’s most important annual political meeting.
A gauge of shares listed in Hong Kong rose as much as 3.4%, with a tech index up 4.1%. The CSI 300 Index, a benchmark of onshore shares, ended the day 0.5% higher.
The MSCI China Index added 2.5%, heading for its first gain in six years on the first trading day of the National People’s Congress (NPC), the equivalent of the country’s parliament.
The strong showing came as Chinese leaders kicked off the NPC by maintaining its growth goal of about 5%, a target seen harder to achieve this year given rising trade tensions with the US and unabated geopolitical uncertainties. Nevertheless, Beijing’s resolve to aim high has raised investors’ hope for more stimulus to come, adding to optimism induced by a fresh pledge to bolster technologies from artificial intelligence to quantum computing.
“There’s nothing to nitpick. Just a robust growth target, and a clear intention to support the economy,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “This should be reassuring to markets.”
In his opening address to the National People’s Congress, Chinese Premier Li Qiang said the nation will advance development of strategic emerging industries and carry out initiatives on the large-scale application of new technologies. “We will establish a mechanism to increase funding for industries of the future and foster industries such as biomanufacturing, quantum technology, embodied AI, and 6G technology,” Li said.
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Chinese chip, quantum computing and robotics shares rallied, with chipmaker Hua Hong Semiconductor gaining as much as 8.7% in Hong Kong and robotics-related Jiangsu Hengli Hydraulic finishing up 5.7% in Shanghai.
“The NPC report showed better-than-expected government support for the China technology sector while general economic targets are in line with expectations,” said Gary Tan, a portfolio manager at Allspring Global Investments . “This helped the HK markets which have higher exposure to technology names than onshore markets.”
Chinese stocks have come under pressure in recent weeks after rising trade frictions dented a rally driven by enthusiasm about the country’s artificial intelligence breakthroughs.
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Earlier this year, Chinese AI startup DeepSeek unveiled technologies that reshaped the industry’s global landscape and caused a rout in the shares of its major Western rivals.
Elsewhere, the offshore yuan lost as much as 0.3% against the dollar. Yields on China’s 10-year government bonds slipped one basis point to 1.75%, suggesting investors are taking the potential increase in debt supply in stride.
The yuan has been in the spotlight since trade tensions with the US escalated. China’s central bank has maintained efforts to fend off excessive currency weakness, including setting the yuan’s reference exchange rate Wednesday at the strongest level since Feb 21.
