China stocks rebound as tech shares gain; banks get CNY 300 billion injection

  • Shanghai and Shenzhen stocks rebounded Monday, led by gains in technology shares.
  • China is injecting CNY 300 billion ($45 billion) into its largest banks and insurers.
  • The recapitalization is the country’s biggest financial-sector operation of its kind in nearly two decades.

Chinese stocks rebounded on Monday, led by technology shares, with the Shanghai Composite rising 0.4% to 3,945 and the Shenzhen Component advancing 0.9% to 13,636. The rally followed strong gains in U.S. technology stocks on Friday, as enthusiasm over OpenAI’s newest AI model improved global sentiment toward chipmakers and other AI-related companies. Cambricon Technologies, SMIC, Shengyi Technology, Zhongji Innolight, Eoptolink Technology and NAURA Technology all posted gains ranging from 1.2% to 3.5%. Separately, China is injecting CNY 300 billion ($45 billion) into its largest banks and insurers in the country’s biggest financial-sector recapitalization in nearly two decades, aimed at strengthening balance sheets and supporting credit growth amid a slowing economy.

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