FX.co ★ China Stocks Rise on Chip Strength, Iran Optimism

The Shanghai Composite inched up 0.1% to 4,151 on Wednesday, while the Shenzhen Component rose 0.5% to 15,957, lifted by renewed strength in chipmakers and easing concerns over US–Iran tensions. Among semiconductor names, SMIC added 0.3%, NAURA Technology advanced 1.6%, GigaDevice Semiconductor gained 2.9%, and Montage Technology jumped 5.0%. The sector was buoyed after SK Hynix’s market capitalization exceeded $1 trillion and Micron Technology also crossed the $1 trillion mark, improving sentiment toward Asian chipmakers seen as major beneficiaries of the AI-driven investment boom.

Risk appetite was further supported by expectations of reduced Middle East tensions after President Trump said talks to extend a ceasefire and reopen the Strait of Hormuz were making progress. On the domestic front, China’s industrial profits surged 18.2% year-on-year in the January–April period, underscoring the resilience of the industrial sector despite ongoing geopolitical uncertainties linked to conflict in the Middle East.