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China tech stocks rally as support measures lift market confidence

21-Jul-26 15:05Hrs IST

Chinese stocks rose strongly on Tuesday, with the Shanghai Composite gaining 1.79% and the Shenzhen Component jumping 4.81%, as investors welcomed fresh measures from authorities to support the technology sector after its recent sharp decline.

Investor confidence was boosted by strong institutional buying. The ChinaAMC STAR 50 ETF attracted a record 13.8 billion yuan (around $2 billion) in net inflows, highlighting renewed demand for Chinese technology stocks.

Support also extended to the insurance sector. China Life Insurance said one of its units had invested more than 10 billion yuan in stocks and mutual funds and plans to increase investments in companies operating in emerging industries. Similar investment commitments were also announced by The People's Insurance Company (Group) of China and Ping An Insurance.

Technology shares led the gains, with Cambricon Technologies rising 11.58%, SMIC climbing 11.2%, Eoptolink Technology advancing 7.25%, and Zhongji Innolight adding 2.51%.

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