China stocks rise as chip shares lead the market higher

Chinese stocks ended higher on Monday, with the Shanghai Composite rising 1.15% to 3,858.2 and the Shenzhen Component gaining 2.72% to 14,148.7. Investors looked past concerns that the blockbuster stock market debut of memory-chip maker CXMT could reduce liquidity in the broader market.

CXMT's shares jumped more than 500% from their IPO price of CNY 8.66 on the first day of trading, making it the most valuable company listed on mainland Chinese exchanges. The strong debut highlighted continued investor interest in China's semiconductor sector, supported by expectations that government efforts to boost technological self-sufficiency will benefit chipmakers.

Economic data also provided support. China's industrial profits increased 18.7% year over year to CNY 3.95 trillion in the first half of 2026, only slightly slower than the 18.8% growth recorded during January to May.

Technology and semiconductor-related stocks were among the biggest gainers. Cambricon Technologies rose 1.31%, Shengyi Technology climbed 6.13%, Zhongji Innolight gained 2.91%, Eoptolink Technology advanced 3.15%, and NAURA Technology added 1.72%.

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