The Shanghai Composite Index hit 3899.96 in early trade, its highest level since August 2015.

By the lunch break, China’s blue-chip CSI300 Index climbed 0.32%, while the Shanghai Composite Index gained 0.45%.

Semiconductor firms jumped 6.3% while AI-related stocks gained more than 3% after the Financial Times reported that China’s internet regulator has ordered top tech firms to halt purchases of US-based Nvidia’s AI chips.

Chinese tech giant Huawei unveiled plans to launch the world’s most powerful computing node, Atlas 950, in the fourth quarter (Q4) of this year.

Following the overnight US Federal Reserve’s (Fed) 25-basis-point interest rate cut, China’s central bank left a key rate unchanged today, as authorities appear in no rush to ease monetary settings.

Hong Kong’s central bank lowered its base rate charged via the overnight discount window by 25 bps to 4.50%, tracking the Fed move.

The benchmark Hang Seng index surpassed the 27,000 mark for the first time since July 2021, before edging down 0.18% by midday.

The Hang Seng Tech Index rose 1.04%.

“China Equities (will likely) be supported by reflation-linked policy easing, AI self-sufficiency initiatives, and continued liquidity support from authorities,” said Ray Sharma-Ong, deputy global head of multi-asset bespoke solutions, at Aberdeen Investments.

Goldman Sachs analysts said in a note that they stay overweight on both Mainland A-shares and Hong Kong-listed Mainland shares, forecasting an 8% and a 3% upside, respectively, in 12 months.

The smaller Shenzhen index advanced 0.7%, the start-up board ChiNext Composite index rose 0.49% and Shanghai’s tech-focused STAR50 index gained 3.4%​.