Chinese markets rebound as technology stocks lead gains

Chinese stock markets recovered on Wednesday, erasing losses from the previous session. The Shanghai Composite rose 0.46% to close at 3,680.6, while the Shenzhen Component gained 1.32% to 11,389.7. Technology stocks led the rally, supported by positive sentiment around artificial intelligence (AI) and chip-related companies.

Cambricon Technologies gained 7.40%, while SMIC rose 1.45%. Hygon Information Technology climbed 3.34%, Zhongji Innolight advanced 5.43%, Eoptolink Technology added 6.30%, and Victory Giant Technology rose 1.45%. The gains were supported by a positive business outlook from AI computing provider CoreWeave and growing expectations of a possible stock market listing by Anthropic.

However, concerns about China's economic recovery continued to weigh on investor sentiment. Despite strong export growth pushing the country's trade surplus above $1 trillion for the second time on record, domestic consumption remains weak. This has raised concerns about China's continued dependence on overseas demand for economic growth.

Government support measures, including mortgage relief and easier access to credit, have so far failed to deliver a meaningful improvement in consumer spending. Investors will continue to watch for signs of stronger domestic demand and further policy support.

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