The Chinese stock market resisted the lethargy seen across the Asia-Pacific region today, standing out with notable gains (CHN.cash: approx. +1.4%). Optimism was driven by IPOs of two GPU companies focused on AI, sparking broad tech sector gains, particularly in Baidu shares (BIDU.US: +4.9% in after-hours trading).
Futures on the HSCEI index halted a three-day losing streak, resuming an attempt to break the current downtrend. The price approached the 23.6% Fibonacci retracement level and paused just below the 30-day exponential moving average (EMA30; light line). A trend reversal would likely require a break above the EMA100 resistance (dark purple). Source: xStation5
What is driving CHN.cash today?
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GPU producer Biren Technology’s IPO was oversubscribed 2,363 times, highlighting continued investor appetite for AI-related stocks despite Western bubble concerns. Another semiconductor company, Iluvatar CoreX Semiconductor, also launched its IPO in Hong Kong, aiming to raise about $475 million.
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Investor interest primarily supported Chinese tech giant Baidu, whose shares surged 8.9% during the Asian session, lifting it to the top of the HSCEI index. Bloomberg reports suggest such strong demand for these startups may prompt Baidu to accelerate the IPO of its own semiconductor arm.
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The second-best performer on HSCEI was SMIC, which, despite general sector gains, signed an agreement with the Chinese government to increase its share capital from $6.5 billion to $10 billion, and plans to raise an additional $547 million through a new share issue.
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