China Stocks Rise on Chip Strength, Iran Optimism

2026-05-27 02:10 By Czyrill Jean Coloma 1 min. read

The Shanghai Composite edged up 0.1% to 4,151 on Wednesday, while the Shenzhen Component advanced 0.5% to 15,957, supported by renewed strength in chip stocks and easing concerns over US-Iran tensions.

SMIC gained 0.3%, NAURA Technology rose 1.6%, GigaDevice Semiconductor climbed 2.9%, and Montage Technology surged 5.0% after SK Hynix pushed its market capitalization above $1 trillion and Micron Technology also surpassed the $1 trillion valuation mark, boosting sentiment toward Asian chipmakers viewed as key beneficiaries of the AI investment boom.

Investor sentiment was further supported by hopes of easing Middle East tensions after President Trump said talks aimed at extending a ceasefire and reopening the Strait of Hormuz were progressing.

On the domestic front, China’s industrial profits surged 18.2% year-on-year in the January–April period, indicating resilience in the industrial sector despite persistent geopolitical uncertainties linked to tensions in the Middle East.



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China Stocks Rise on Chip Strength, Iran Optimism
The Shanghai Composite edged up 0.1% to 4,151 on Wednesday, while the Shenzhen Component advanced 0.5% to 15,957, supported by renewed strength in chip stocks and easing concerns over US-Iran tensions. SMIC gained 0.3%, NAURA Technology rose 1.6%, GigaDevice Semiconductor climbed 2.9%, and Montage Technology surged 5.0% after SK Hynix pushed its market capitalization above $1 trillion and Micron Technology also surpassed the $1 trillion valuation mark, boosting sentiment toward Asian chipmakers viewed as key beneficiaries of the AI investment boom. Investor sentiment was further supported by hopes of easing Middle East tensions after President Trump said talks aimed at extending a ceasefire and reopening the Strait of Hormuz were progressing. On the domestic front, China’s industrial profits surged 18.2% year-on-year in the January–April period, indicating resilience in the industrial sector despite persistent geopolitical uncertainties linked to tensions in the Middle East.
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The Shanghai Composite slipped 0.17% to close at 4,145 on Tuesday, while the Shenzhen Component edged up 0.12% to 15,876, leaving benchmarks mixed as market sentiment turned cautious after US military strikes in the Middle East dimmed hopes for a near-term peace agreement. The US and Israel launched strikes in southern Iran, describing the operations as defensive measures, even as Washington and Tehran were reportedly moving closer to a potential agreement aimed at easing tensions and reopening the Strait of Hormuz. Meanwhile, Chinese investors are increasingly seeking alternative channels to trade overseas equities after Beijing intensified its crackdown on illicit cross-border stock trading in an effort to curb capital outflows. Among individual stocks, major decliners included SMIC (-4.27%), Kweichow Moutai (-0.97%), Luxshare Precision Industry (-2.95%), and NAURA Technology Group (-3.07%).
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