Chinese stocks surge post Lunar New Year holidays

Chinese stock market: China's stock market kicked off the Year of the Dragon on a positive note following the Lunar New Year break, with investors showing enthusiasm for tourism and entertainment stocks amidst robust holiday spending.

The upbeat sentiment was influenced by strong performances in Hong Kong stocks, U.S.-listed Chinese companies, and advancements in artificial intelligence (AI) worldwide.

Anticipation also lingers for potential government interventions to bolster China's economy and its market. Speculation surrounds the possibility of a reduction in China's benchmark mortgage reference rate, despite the recent maintenance of a key policy rate.

The CSI300 Index and the Shanghai Composite Index both recorded gains, marking the fourth consecutive session of upward movement. However, Hong Kong's Hang Seng Index experienced a slight retreat, particularly affecting the tech subindex.

Expectations for support from the new chairman of China's securities watchdog, combined with impressive holiday statistics such as a significant surge in tourism revenues and record-breaking box office revenue, contributed to investor confidence.

Notably, travel-related stocks witnessed a surge, while shares of film-makers also saw positive movement. However, the small-cap CSI500 Index experienced a slight dip, and Chinese developers listed in Hong Kong faced challenges, reflecting ongoing concerns about the real estate sector's impact on the broader economy.

Investor interest in Chinese AI companies remained high, buoyed by recent developments such as OpenAI's new software, Sora. Analysts anticipate continued demand for computing power, reinforcing AI's status as a compelling investment theme for the year.

(With Reuters inputs)