Chinese Stocks Rally on Tech Self-Reliance Push, STAR 50 Up 3.5% on Jan. 21

Chinese equities surged Wednesday, defying a global selloff as Beijing’s renewed commitment to technological self-reliance fueled investor confidence. The STAR 50 Index climbed 3.5% to its highest level since October, while the CSI 300 (000300.SS) ended marginally higher. Gains were led by semiconductor stocks amid rising memory prices and strong policy support for domestic AI and chip development. Loongson Technology Corp. jumped 20%, Hygon Information Technology Co. rose 13%, both hitting record highs. Bloomberg Intelligence’s Steven Tseng noted the rally reflected broader momentum tied to China’s supply chain resilience strategy. Despite surging ETF turnover—especially in small-cap CSI 1000-tracked funds—regulators tightened margin rules earlier in the day, signaling intent to curb overheating. Fund manager Chen Shi cited limited onshore investment options as a key driver of sustained outperformance, predicting more days of China-led gains in 2026.