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China Market surges 1.3%; AI shares lead rally

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Last Updated : Feb 27 2024 | 5:31 PM IST
Mainland China share market finished session sharply higher on Tuesday, 27 February 2024, with artificial intelligence (AI) firms leading the gains, helped by the AI boom in the United States and talks of policy support for China's homemade AI servers.

Market participants are awaiting authorities' next policy move as the National People's Congress begins its annual meeting on March 5. Key topics to monitor include discussions about the governments "new model" for the property sector, local government financing and fiscal reforms, as well as other demand-side stimulus such as support to consumption

At close of trade, the benchmark Shanghai Composite index was up 1.29%, or 38.48 points, to 3,015.48. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.35%, or 39.43 points, to 1,716.58. The blue-chip CSI300 index grew 1.2%, or 41.43 points, to 3,494.79.

CURRENCY NEWS: China's yuan was little changed against the dollar on Tuesday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1057 per dollar, 23 pips firmer than the previous fix 7.1080. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.1982 at midday, 2 pips weaker than the previous late session close.

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First Published: Feb 27 2024 | 3:20 PM IST

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