Tech Stocks Drive Modest Gains in Chinese Markets Amid Policy Shifts

Chinese stocks experienced a slight uptick, led by tech shares, after Beijing indicated new support measures for innovative tech companies and reduced benchmark lending rates. Despite market volatility and investor caution related to upcoming U.S. elections, tech stocks like SMIC saw substantial gains.

On Monday, Chinese stocks saw a modest rise, primarily driven by gains in technology shares. The upswing followed signals from Beijing regarding fresh measures to bolster innovative tech firms, coupled with reductions in benchmark lending rates. Notably, the CSI300 Index rose by 0.3%, while the Shanghai Composite added 0.2%.

Information technology shares topped the gains, marking a 6.5% increase, while the STAR50 index rose by 8.7%. Semiconductor giant SMIC registered an 8.1% gain, reflecting positive investor sentiment buoyed by policy changes and supportive remarks from President Xi Jinping.

However, the Hang Seng index faced pressure, dropping 1.6%, influenced by declines in tech and electric vehicle companies like NIO. Meanwhile, Beijing's actions to promote small and medium-sized tech companies on its stock exchange drove the exchange's 50 Index to a record-breaking 16% increase.

(With inputs from agencies.)