** The blue-chip CSI300 index was up 1.9%, its best gain since September.
** The tech sector rallied the broader market higher. Shanghai’s tech-focused STAR50 index was up 4.4%.
** CSI Semiconductor surged 5.6% to a three-month high, and artificial intelligence index added 3.2%.
** “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, Bank of America analysts said in a note. They see a 10% to 15% room for further multiple expansion for China equities.
** Among other winners, the insurance sector surged 5.5% to a record, and the defense sector climbed 2.1% to the highest level in nearly three years. ** Meanwhile, the energy sector weakened 1.2% as major state firms with investments in Venezuela dropped after the U.S. 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. ** In Hong Kong, the Hang Seng Index was largely flat at 26,347.24 after the strong rally on Friday. The Hang Seng Tech Index added 0.1%.