China’s technology-focused STAR 50 index witnessed a dramatic rally during morning trading on Tuesday, surging 4.71% as investors aggressively piled into the domestic semiconductor sector. The market's enthusiasm centered on Cambricon Technologies, the nation's premier artificial intelligence chip designer, which saw its shares jump 17% to hit a record high. This surge allowed the firm to reclaim its title as the board’s most influential 'Stock King,' with its market valuation briefly crossing the 700-billion-yuan threshold.
Trading activity across the Shanghai and Shenzhen exchanges reached a staggering 1.81 trillion yuan in the first half-day alone, an increase of nearly 185 billion yuan over the previous session. This massive liquidity injection underscores a renewed risk appetite among domestic investors, specifically targeting the 'computing power' narrative. As global competition for AI infrastructure intensifies, mainland capital is increasingly concentrating on domestic players capable of narrowing the gap with international giants like Nvidia.
The rally extended beyond hardware designers to the broader AI ecosystem and strategic industrial sectors. VeriSilicon Microelectronics hit the 20% daily limit, while the lithium mining and commercial space sectors also recorded significant gains. This sectoral rotation suggests that while AI remains the primary catalyst, the market is also looking for value in 'New Quality Productive Forces,' including the aerospace supply chain and EV battery materials, which have faced recent volatility.
Despite the exuberance in technology, the broader indices showed signs of late-morning fatigue, with the Shanghai Composite and ChiNext indices retreating from their peaks to trade near flat. This divergence highlights a distinct 'tech-heavy' sentiment where investors are shunning traditional sectors and green energy stocks in favor of high-growth, high-speculation assets. The adjustment in the green energy sector, which saw several limit-down performances, serves as a reminder of the high stakes and rapid capital shifts currently defining the Chinese equity landscape.