Hong Kong, — Chinese stocks rose on Wednesday as investors piled up on AI-related stocks after the government issued guidelines to accelerate AI adoption in various sectors.
**China's Blue Chip CSI300 index rose 0.7% during lunch break, while the Shanghai Composite Index rose 0.3%.
**Hong Kong benchmark Hansen was largely flat. Hang Seng Tech rose 0.6%.
**The State Council announced its “AI Plus” initiative late Tuesday, strengthening the application of AI in a variety of areas, including technology and consumption.
** AI, cloud computing and semiconductor stocks have gathered widely behind the policy stimulus.
** The CSI AI index jumped 5.5% by noon, hitting a record high. Semiconductor inventory increased by 4%.
** “This development represents a strong catalyst for growth stocks and associated subsectors,” investment manager Kraneshares said in a memo.
**Stock in Cambricon Technologies has surged to a record high of more than 8% after AI chip makers made profits in the first half.
**On the other hand, the broader economy remains difficult. China's industrial profits fell for the third consecutive time in July, with on-demand and deflationary struggles, according to official data.
** “The lifespan of this stock rally remains uncertain,” an analyst at the UBS Global Wealth Management Chief Investment Office said in a memo.
** Given the worsening macro state, investors may move their focus to the fourth plenary session in October, waiting for new measures to support the economy.
**Shenzhen Index rose 0.8%, the startup board Chinext Composite Index rose 2.41%, and the Shanghai-focused STAR50 index rose 4.16%.
**China's stock increase was also helped by the strength of the currency.
**China Yuan reached a temporary high in nearly 10 months against the dollar on Wednesday due to strong guidance revisions and weak dollars.
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