Chinese shares rose on Wednesday amid market optimism regarding technology companies' prospects in 2026.
The Shanghai Composite Index, the main gauge of Chinese stocks, rose 0.7% to 4,147.23. The Shenzhen Component Index climbed 1.3% to 14,475.87.
UBS said it expects China's technology industry to thrive this year due to higher investment and advancements in artificial intelligence, Investing.com reported.
The brokerage said Chinese tech leaders invest far less than their American counterparts, but anticipates they will reveal larger spending budgets during upcoming financial reports. Unlike the US, where investors have started criticizing rapid spending increases, Chinese investors still support companies that boost their investments.
UBS analysts foresee significant AI developments emerging from China in 2026, including stronger foundational models and innovative applications.
In company news, Sunshine Guojian Pharmaceutical (Shanghai)'s (SHA:688336) attributable profit rose 317% to 2.94 billion yuan in 2025 from 704.6 million yuan in 2024. Shares of the company jumped 8% Wednesday.
