Chinese technology stocks rise, Lenovo jumps 16 per cent

Chinese stocks rose on Friday trading (22 May 2026). However, the market remains on track for a weekly decline for two consecutive weeks due to profit-taking in the technology sector. The rally was supported by a tech stocks rebound, with positive sentiment mainly coming after Lenovo’s earnings surpassed analysts’ expectations. The key CSI 300 index rose 0.7% at midday trading, but the index was still expected to fall by almost 1% for the week. The performance was the worst in nearly two months. The Shanghai Composite also rose 0.5% after the previous day recorded the biggest fall since March. In Hong Kong, the Hang Seng rose 1.2%, led by tech shares after Lenovo surged 16%. Investor enthusiasm for AI helped to damp concerns about a broader slowdown in the Chinese economy. BNP Paribas said earnings expectations for companies in China and several Asian countries rose sharply. However, the rise was seen as highly dependent on the technology sector. “This, however, is not a broad-based story but almost entirely driven by a super technology cycle,” BNP Paribas wrote in its research. The bank warned that the tech rally could become a new source of risk for the regional market. “In the short term, that remains the only story,” the report added. Goldman Sachs also said the Chinese economy is now moving in two directions. The tech sector is growing very quickly. By contrast, the traditional industrial sector or old economy is still under pressure. “The ongoing Middle East conflict and higher energy prices have negatively affected the Chinese economy,” Goldman Sachs wrote. Nevertheless, the US investment bank said the Chinese economy remains resilient in facing higher oil prices. “So far, the Chinese economy has been more flexible than expected in adapting to higher oil prices,” they added. Goldman also urged investors to monitor developments in China’s exports, which have long been the main driver of economic growth. In addition, signs of recovery in the property sector are starting to appear, especially in major cities.