The landscape of the Chinese equity market underwent a symbolic transformation this week as the tech-heavy ChiNext index surged to an 11-year high. Driven by a frenetic rally in artificial intelligence infrastructure, the index gained over 1%, signaling a decisive shift in investor sentiment toward hardware and high-tech manufacturing. Total market turnover reached a staggering 2.43 trillion yuan, reflecting a significant injection of liquidity into the technology sector.
In a landmark moment for the A-share market, semiconductor player Yuanjie Technology surpassed Kweichow Moutai to become the most expensive stock in China by share price. For years, Moutai—the premium baijiu distiller—has served as the undisputed bellwether of Chinese domestic consumption and institutional stability. Its displacement by a high-end laser chip manufacturer underscores the structural pivot toward the 'new quality productive forces' championed by Beijing.
The rally was concentrated in the computing power supply chain, where components for AI data centers saw explosive growth. Co-packaged optics (CPO) and printed circuit board (PCB) manufacturers dominated the gainers' list, with several industry leaders like Cambridge Industries and Accelink Technologies hitting all-time highs. This hardware-centric fervor also extended to liquid cooling solutions, as energy efficiency becomes a critical bottleneck in China's rapidly expanding AI infrastructure.
Despite the buoyancy in tech, the broader market remains fragmented, with nearly 3,000 individual stocks closing in the red. Traditional recovery plays, such as tourism and hospitality, faced a sharp correction as investors rotated capital out of services and into the semiconductor value chain. This divergence suggests that while the AI theme is powerful enough to lift indices, it is creating a lopsided market where capital is increasingly concentrated in a narrow band of strategic industries.