Global AI trade revival brightens outlook for Chinese tech stocks after record sell-offs

Improved corporate earnings and a broader global tech rebound are helping stocks bounce back from a record monthly decline The outlook for Chinese technology stocks has improved after a sharp monthly sell-off, as the global rebound in the artificial intelligence trade regains momentum, speculative positions are flushed out and falling oil prices ease fears of monetary tightening. US markets have benefited as concerns over Federal Reserve tightening fade, while de-escalating tensions in the Middle East have sent oil prices lower and corporate earnings reports show AI demand remains robust. “Chinese stocks are now entering the stage of rebuilding confidence after the overheating risk was largely defused,” said Song Yiwei, an analyst at Bohai Securities. “The market is expected to bottom out, as the earnings season for interim reports may give fundamental support for funds’ reallocation.” The rout in Chinese tech stocks followed a more than 60 per cent surge in the Star Market 50 this year, while leveraged traders pushed bets to record highs to maximise exposure to AI plays.

Read the full article at the source →