China’s mainland stocks advanced on Thursday, led by optical communications and technology companies, as strong forecasts from U.S. artificial intelligence firms reinforced expectations for robust demand for AI hardware and computing infrastructure. Hong Kong equities remained largely subdued, Reuters reported.
The blue-chip CSI300 index gained 0.5% by the lunch break, while the Shanghai Composite Index rose 0.4%. In Hong Kong, the Hang Seng Index was up 0.1%.
Optical module makers were among the biggest gainers. Eoptolink Technology climbed 4.2%, TFC Optical Communication jumped 10.5%, and Zhongji Innolight rose 5.5%. The gains followed upbeat forecasts from U.S.-listed CoreWeave and Super Micro Computer, which pointed to strong demand for AI computing capacity.
According to Reuters, the positive sentiment was also supported by a nearly 14% rise in U.S. optical communications company Lumentum in New York trading. China’s 5G Communication Index advanced nearly 3%, while the technology-focused STAR50 Index gained about 2%.
Memory chipmaker CXMT rose 1.3%, adding to gains across parts of China’s technology sector.
Financial stocks on the mainland were broadly steady after the People’s Bank of China said on Wednesday that it would maintain an appropriately loose monetary stance and introduce practical measures when necessary. However, the central bank stopped short of signalling immediate reductions in policy rates or banks’ reserve-requirement ratios, Reuters said.
Hong Kong-listed technology majors edged up 0.3%, although Tencent Holdings fell 3.8% to a two-week low. The decline came after the company reported record quarterly negative free cash flow and increased capital spending on artificial intelligence investments.
Reuters reported that investors were weighing concerns over weak consumption and the possibility that increased AI spending could take longer to generate corresponding returns, putting pressure on Tencent shares.
Elsewhere in Hong Kong, materials stocks fell 3.6%, weighed down by gold miners. China Gold International Resources dropped 5.9%.
Overall, the session highlighted the growing influence of the global AI investment cycle on Chinese technology stocks, while concerns over consumer demand, investment returns and commodity-related shares kept gains in broader markets in check.
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