Gains by China technology stocks drove broader gains on Thursday after Beijing announced a new government body to oversee development of the country’s tech sector.
The State Council, China’s cabinet, announced the formation of a Leading Small Group on technology in a statement published to its website on Wednesday and dated to July 28.
Such groups have become common during the tenure of President Xi Jinping, who has used them to exert greater control over specific policy portfolios deemed vital to the national interest.
While many such bodies are helmed by Mr Xi, the new technology group will be chaired by Li Keqiang, China’s premier, and does not list Mr Xi as a member in any capacity.
Investors were perhaps more keen on the possibility of increased government funding for Chinese tech firms, which have faced a string of recent difficulties amid mounting tensions between the US and China.
The technology segment led the gains on the CSI 300 index of major companies listed in Shanghai and Shenzhen, surging 5.5 per cent. Among the top movers, ZTE, the Chinese telecoms giant which has been plagued by issues over market access in the US, rose by the daily maximum of 10 per cent.
Hikvision Digital Technology, the world’s largest security camera manufacturer, was up 9.7 per cent.
In Hong Kong, internet giant Tencent Holdings was 2.6 per cent higher and major Chinese chipmaker Semiconductor Manufacturing International Corporation added 3.5 per cent as the technology sector likewise led gains for the broader Hang Seng index.
The moves helped buoy both indices, with the CSI 300 rising 2.6 per cent and the Hang Seng 1.1 per cent higher.