At the midday break, the Shanghai Composite index was up 1.1% at 4,011.45 points, marking its first time to top the level since Nov 14.

China’s blue-chip CSI300 index was up 1.6%, also hovering near its highest level in nearly three months.

The tech sector rallied the broader market higher. The Shanghai’s tech-focused STAR50 index was up 4.1%. ​

CSI Semiconductor surged nearly 5% to a three-month high, and the artificial intelligence index added 2.8%.

“Innovation-led growth, particularly in AI and advanced manufacturing, could emerge as new growth engines” despite structural challenges such as property slump and weak income trends, analysts at Bank of America said in a note.

They see a 10% to 15% room for further multiple expansion for China equities, supported by potential fund inflows from insurers, US Federal Reserve easing, and policy catalysts such as the Two Sessions in March and President Donald Trump’s planned China visit in April.

Meanwhile, the energy sector weakened as major state firms with investments in Venezuela dropped after the US captured President Nicolas Maduro and said it would take control of the South American country.

“We believe overseas geopolitical disruptions are likely to be temporary emotional shocks that won’t derail the upward trend of the spring rally”, given ample market liquidity and positive policy signals, analysts at Huatai Securities said in a note.

The US attack will embolden China to strengthen its territorial claims, but will not hasten any potential invasion of Taiwan, analysts said.

In Hong Kong, the Hang Seng Index was down 0.1% at 26,316.55 after the strong rally on Friday. The Hang Seng Tech Index weakened 0.2%.