Chinese Stocks Rise on Economic Growth, Corporate Earnings

Chinese stocks rose this week on positive investor sentiment following the release of progressive goals for the nation's 15th Five-Year Plan (2026-30), solid economic growth figures and strong earnings reports from AI-related domestic companies.

The benchmark Shanghai Composite Index increased 2.19 percent for the week, with a gain of 0.71 percent on Friday. The Shenzhen Composite Index jumped 3.2 percent for the week, while ChiNext surged 5.47 percent led by shares in computing power and chips.

"The country has laid great importance on the development of future industries like artificial intelligence, semiconductor and biomedicine – all of which have been written into the blueprint outlining the goals in the next five years," said Zhang Jun, a professor of economics at Fudan University.

"For these forward-looking industries, what matters most is coordinated development of supply and demand, and a complete ecosystem to support growth," Zhang added.

A communique from the Central Committee of the Chinese Communist Party outlining goals of the country's next Five-Year Plan stressed national self-reliance in science and technology by promoting breakthroughs in integrated circuits and other cutting-edge industries. It also pledged deeper economic reforms and promotion of efficient markets.

"It is a plan with consistency, so investment as well as the construction of key sectors are phased and planned," Zhang said.

China economic growth figures for the first nine months of the year came in at 4.8 percent, putting them on track to reach the government's 5 percent goal for 2025. In corporate reporting, strong earnings from AI-related Chinese companies like Cambricon, Hygon, iFlytek and Hikvision added to investor buying zeal.

Hong Kong's stock market rose 1.07 percent in the past five trading days. Japan's Nikkei jumped 2 percent, and South Korea's Kospi surged 4.4 percent.

Asia stocks are expected to get a Monday boost after all three major indexes in New York rose to records on Friday, following consumer prices in September came in cooler than expected and expectations rose for a further cut in rates by the Federal Reserve. Investors were also cheered by third-quarter corporate earnings results.

The Dow Jones Industrial Average gained 1 percent, the S&P 500 added 0.8 percent and the Nasdaq climbed 1.2 percent. In Europe, the Stoxx600 edged up 0.2 percent.