On August 17, A‑share markets rallied across the board with improved market sentiment. The Shanghai Composite Index rose more than 1%, edging close to the 4,000‑point mark. The ChiNext Index and STAR 50 Index surged over 3% and 4% respectively. More than 4,300 stocks advanced across the market, translating into markedly improved profit‑making sentiment.

Technology sectors led the rally, with computing‑power hardware and semiconductor segments surging collectively. Concepts including optical chips, CPO, aluminium nitride and copper‑clad laminates saw a flood of limit‑up moves. Semiconductors climbed broadly: the semiconductor index gained over 5% and the memory‑chip index rose more than 4%. Sub‑segments such as advanced packaging and semiconductor equipment also posted strong gains. Leading firm ChangXin Technology jumped more than 10% in a single trading day, with its market capitalisation exceeding RMB 4 trillion, which greatly boosted sentiment across the semiconductor sector.

Brokerage analysts pointed out that the rebound in the technology sector was driven by a confluence of positive factors. Better‑than‑expected semi‑annual reports from leading companies provided solid fundamental support; increased overseas investment in computing power and robust demand for AI hardware brightened industry outlooks. Following ample corrections earlier, sector valuations returned to reasonable levels. Policy support and inflows of institutional capital further fuelled the sharp recovery.

Institutions noted that the two long‑term drivers — expansion of AI computing power and semiconductor self‑reliance — remain intact, leaving ample room for industry growth. Nevertheless, the sector is unlikely to maintain a straight‑line uptrend; volatility and divergence are expected to become the norm, and the current rally is largely a short‑term sentiment‑driven recovery. Investors are warned to watch out risks from crowded trades in the sector and overseas market swings, and to maintain prudent trading rhythms.