Shanghai Composite Extends Gains on Private Sector Growth Optimism

The Shanghai Composite Index rose 0.27% to close at 3,356, while the Shenzhen Component gained 0.39% to 10,791 on Monday, continuing a two-week market rally. Investors responded positively as President Xi Jinping chaired a meeting focused on boosting China’s private sector. The closed-door symposium was attended by prominent business leaders, including Alibaba founder Jack Ma, signaling a renewed emphasis on economic growth and business support.

AI Stocks Drive Market Gains

China’s technology and artificial intelligence (AI) sectors led the stock market rally, with strong gains from major players, including:

• IEIT Systems: +7.4%
• China United Network: +8%
• Digital China Group: +3.7%
• Zhongji Innolight: +7.7%
• Dawning Information: +3%

The surge was fueled by DeepSeek’s AI breakthrough, which has sparked increased adoption of artificial intelligence solutions among Chinese companies. Investors are showing renewed confidence in China’s technology sector, with AI stocks gaining significant momentum.

Xi Jinping’s Push for Economic Growth

At the closed-door meeting, Xi Jinping reaffirmed the government’s commitment to supporting private businesses and fostering economic expansion. Analysts see this as a positive step toward restoring investor confidence, particularly in light of regulatory pressures that previously weighed on Chinese tech giants.

Market Outlook

With ongoing government support, AI sector growth, and renewed private sector confidence, Chinese stocks could continue their upward trajectory. Investors will be closely watching policy developments and corporate earnings reports in the coming weeks to gauge the sustainability of this rally.

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