Tech Stocks Surge, China Stock Market Hits 11-Year High

Chinese stocks strengthened sharply during trading on Monday (11/5/2026). The surge was driven by a boom in technology shares and increasing optimism towards the artificial intelligence (AI) industry. This condition propelled China’s main stock indices to their highest levels in nearly 11 years. At the midday trading break, the Shanghai Composite Index rose 0.9% to 4,219.13. This position marked the highest since 1 July 2015. The flagship CSI 300 index also gained 1.4%, reaching its highest level in more than four years. Meanwhile, the Hong Kong market moved differently, with the Hang Seng Index falling 0.3% to 26,318.37. Positive sentiment emerged after investors grew increasingly optimistic about the prospects of the global AI industry. A rally in technology stocks also occurred in several other Asian exchanges. The CSI Semiconductor Index surged 7.3%, setting a new all-time high. The CSI AI Index rose 3%, while the information technology sector index jumped 4.8%. Both also touched all-time highs. The STAR50 Index, comprising innovation-based technology companies, rose 5.3%. Meanwhile, the ChiNext Index added 3%. Export increases occurred as factories in China accelerated production to meet the surge in global AI industry demand. Many buyers also began stockpiling electronic components amid uncertainties due to the Iran conflict. In addition to exports, the latest economic data shows that price pressures in China are starting to rise. China’s Producer Price Index (PPI) in April rose beyond market expectations, reaching the highest level in the last 45 months. Consumer inflation also increased in line with persistently high global energy prices.