The ChiNext Index, a barometer for China’s high-growth technology and green energy sectors, surged more than 3% to reach an eleven-year high on April 16. This rally was spearheaded by Contemporary Amperex Technology Co. Limited (CATL), the world’s leading EV battery manufacturer, which saw its market capitalization eclipse the symbolic 2-trillion-yuan ($275 billion) threshold. The surge reflects a renewed investor appetite for China’s industrial leaders as the 'New Three'—electric vehicles, lithium-ion batteries, and solar products—continue to underpin the nation's economic transition.
Supporting this bullish momentum is a significant uptick in the computing power rental sector, driven by a tightening global supply of Nvidia GPUs. As spot prices for high-end graphics processing units rise, Chinese firms specializing in computing infrastructure, such as Hongjing Technology and Jinji Gold, have seen their stock prices hit the daily 20% limit. This domestic enthusiasm for AI-adjacent infrastructure suggests that while direct access to cutting-edge chips remains complex due to trade restrictions, the valuation of mid-stream providers remains resilient.
However, the day was not without its tremors, particularly within the semiconductor segment. VeriSilicon Microelectronics saw its shares plummet nearly 14% in afternoon trading, triggered by unverified market rumors regarding potential order losses and lackluster earnings projections for 2026. This sudden volatility underscores the fragility of investor confidence in the chip sector, which remains highly sensitive to 'market essays'—the local term for unverified social media speculation—and shifting supply chain dynamics.
Other heavyweights in the domestic GPU space, including Haiguang Information and Loongson Technology, also experienced sharp intraday corrections. The divergence between the steady gains in battery manufacturing and the high volatility in semiconductors highlights a two-speed market. While established industrial giants like CATL are finding solid ground through strong quarterly earnings, the domestic chip industry continues to grapple with speculative pressure and the long-term uncertainties of global competition.