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2026-05-25 12:07:38
[Easing Geopolitical Risks Boost Sentiment, Shanghai Composite Index Closes Higher in Morning Trading, Semiconductor Sector Leads Gains] 1. China's Shanghai Composite Index closed higher in morning trading on Monday, as signs of easing geopolitical tensions boosted overall market sentiment. The semiconductor sector rallied significantly, driving a strong rise in the STAR Market 50 Index. 2. By midday close, the Shanghai Composite Index was up 0.6% at 4136.25 points, while the CSI 300 Index closed up 0.9%. The Shenzhen ChiNext Index rose 1.1%, and the Shanghai STAR Market 50 Index surged 3.6%. 3. Analysts say that since April, market funds have clearly shifted towards the ChiNext and STAR Market, with traditional valuation methods such as price-to-earnings ratios and price-to-book ratios being temporarily set aside in these sectors. Although artificial intelligence, as a long-term investment theme, offers vast opportunities brought by industrial upgrading, investors are easily reminded of companies like Intel, Cisco, and IBM during the dot-com bubble. Once the narrative shifts, the impact of a bursting bubble will be extremely severe. 4. Analysts further pointed out that while market activity has been high in the past two weeks, internal disagreements are gradually widening. For more cautious investors, avoiding the tail end of a rally and only capturing opportunities with higher certainty may be a more prudent strategy. 5. On the external news front, US President Trump stated last Saturday that a memorandum of understanding for a US-Iran peace agreement had been "basically agreed upon." The US, Iran, and Pakistan, among others, have confirmed progress in the negotiations. However, Trump instructed his representatives on Sunday not to rush into any agreement with Iran, slightly cooling expectations that the war was about to end. 6. On the market, the semiconductor sector performed the best, with the CSI All Share Semiconductor Products and Equipment Index surging 5.1%. Huawei's recently released "Semiconductor Strategy" has attracted market attention. In terms of individual stocks, Huahong Corporation surged 16.4%.
