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<\/p>\nTraders are now turning their attention to policy signals ahead of the Communist Party\u2019s Oct 20 to 23 meeting, where the blueprint for the 15th five-year plan will be outlined<\/p>\n
[HONG KONG] China\u2019s stock market opened higher on Thursday (Oct 9) after a weeklong break, as investors opted to focus on artificial intelligence (AI)-driven growth over tepid holiday spending data.<\/p>\n
The onshore CSI 300 Index rose as much as 0.6 per cent after the opening. A gauge of Chinese shares listed in Hong Kong fell 0.3 per cent, extending the 0.3 per cent decline logged while mainland markets were shut. <\/p>\n
Lingering signs of economic sluggishness, reflected in underwhelming holiday spending, were not enough to dampen investor enthusiasm for AI. Some investors remained hopeful that the global AI frenzy, fuelled by companies touting OpenAI ties and sending tech stocks to fresh highs while China was closed, would spill over into Chinese markets.<\/p>\n
\u201cThere\u2019s been a bunch of news around OpenAI that\u2019s positive on AI sentiment that happened during the China holiday that isn\u2019t reflected in share prices,\u201d said Xin-Yao Ng, a fund manager at Aberdeen Investments. \u201cThere will be some catching up to do.\u201d<\/p>\n
Traders are now turning their attention to policy signals ahead of the Communist Party\u2019s Oct 20 to 23 meeting, where the blueprint for the 15th five-year plan will be outlined. The Trump-Xi meeting at next month\u2019s Apec summit in South Korea could add another catalyst if tariff talks resume.<\/p>\n
The CSI 300 Index has climbed for five straight months to September, its longest winning streak since 2017, led by enthusiasm over chip stocks after DeepSeek\u2019s unveiling of an updated AI model and Huawei Technologies\u2019 plan to double output of its top AI chips. <\/p>\n
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Despite the rally, Chinese equities remain much cheaper than their peers. The MSCI China Index traded at below 14 times forward earnings, far below the S&P 500\u2019s valuation at 23 times, according to Bloomberg-compiled data.<\/p>\n
\u201cIf high-growth Chinese names, particularly in the Internet space, can deliver on their potential earnings, they are looking very attractive relative to global peers,\u201d said Ian Samson, a multi-asset portfolio manager at Fidelity International in Singapore.<\/p>\n
Weak spending<\/p>\n
Golden Week spending reflected consumers\u2019 budget-conscious behaviour. Travel and experiences remain a priority, but box office figures and airline demand disappointed.<\/p>\n
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