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Chinese Shares Rise on Tech Rally; Genori Technology Surges in Debut

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Chinese shares erased earlier losses to end in green on Wednesday, driven by a rally in technology stocks and positive policy signals.

The Shanghai Composite Index, the main gauge of Chinese stocks, rose 0.1% to 4,110.81. The Shenzhen Component Index jumped 1.2% to 16,051.32.

The SSE STAR 50 Index (SSE:000688), the benchmark for the 50 largest science and technology companies on the Shanghai bourse, closed 4% higher.

Positive global cues included news that South Korea is in discussions with Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) over the next phase of large-scale semiconductor investments.

South Korean presidential policy adviser Kim Yong-beom said AI-driven demand growth may require the two chipmakers to boost planned chip facility construction by more than 10 years to 2034-2035, while the government looks for space to build a second semiconductor cluster.

Also boosting sentiment was China's action plan to boost and stabilize foreign investments.

The plan, signed by the commerce and finance ministries, as well as the National Development and Reform Commission, highlights market access expansion, facilitating and supporting foreign investment, and beefing up investment promotion, among others.

In company news, shares of Chongqing Genori Technology (SHA:688797) surged 1,213% versus their initial public offering price of 44.56 yuan on their first day of trading on the Shanghai bourse.

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