A gauge of stocks listed in Hong Kong gained as much as 2.6%, with a technology index up more than 3% after authorities pledged support for the sector. The CSI 300 Index, a benchmark of onshore shares, fluctuated.
The gains signal investors’ hope that by maintaining its growth goal of about 5% for a third straight year and setting the highest fiscal deficit level in over three decades, Beijing will take more potent steps to boost demand that can counter persisting deflationary pressures and housing woes. A more aggressive policy response is also vital now that Donald Trump has intensified trade tensions by imposing another 10% tariff on China.
“There’s nothing to nitpick. Just a robust growth target, and a clear intention to support the economy,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “This should be reassuring to markets.”
In his opening address to the National People’s Congress, Chinese Premier Li Qiang said the nation will advance development of strategic emerging industries and carry out initiatives on the large-scale application of new technologies. “We will establish a mechanism to increase funding for industries of the future and foster industries such as biomanufacturing, quantum technology, embodied AI, and 6G technology,” Li said.
Chinese chip, quantum computing and robotics shares rallied, with chipmaker Hua Hong Semiconductor Ltd. gaining as much as 7.1% and robotics-related Jiangsu Hengli Hydraulic Co. up 8.6%.
“The NPC report showed better-than-expected government support for the China technology sector while general economic targets are in line with expectations,” said Gary Tan, a portfolio manager at Allspring Global Investments. “This helped the HK markets which have higher exposure to technology names than onshore markets.”
Chinese stocks have come under pressure in recent weeks after rising trade frictions dented a rally driven by enthusiasm about the country’s artificial intelligence breakthroughs.
