China stocks close slightly higher on AI sentiment rebounding

Reuters01-21
China stocks close slightly higher on AI sentiment rebounding

Updates to market close

SHANGHAI, Jan 21 (Reuters) - China stocks ended slightly higher on Wednesday, led by artificial-intelligence firms, as sentiment steadied after regulators cooled exuberance this month. Hong Kong shares were up.

** China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC both closed 0.1% higher. Hong Kong benchmark Hang Seng .HSI rose 0.4%.

** Onshore AI stocks .CSI930713 rose 2.2% after three sessions of declines, while semiconductors .CSIH30184 climbed 3.7%. Tech majors traded in Hong Kong .HSTECH advanced 1.1%.

** Non-ferrous metals .CSISNMIM grew 2.9%.

** A UBS survey shows strong investor interest across metals-linked sectors in the first quarter, along with preference for basic materials, aerospace, semiconductors and related equipment.

** "At the same time, clients expressed concern over stretched valuations and the risk-reward profile of China A-share tech stocks after their sharp year-to-date rally," UBS analysts said.

** Over the past week, Shanghai and Shenzhen stock exchanges each took regulatory measures against hundreds of abnormal trading practices such as price pumping and false orders. The bourses also launched probes into several listed companies over allegedly misleading statements.

** The measures reflect regulators' intention to slow the pace of market gains.

** Analysts at AllianceBernstein said China's onshore shares securing a third straight annual gain in 2026 will hinge on earnings beginning to deliver on growth expectations.

** China Vanke's onshore shares 000002.SZ ended 4.6% higher after its bondholders agreed to defer receiving payment of 60% of the principal for a 1.1 billion yuan ($158 million) puttable bond CN149358SZ= by one year, a filing showed.

(Reporting by Shanghai Newsroom; Editing by Sumana Nandy)

((li.gu@tr.com))

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