Risk appetite is returning to China’s tech sector as margin lending, trading volumes, and equity benchmarks rise, driven by expectations that the rally will continue. Outstanding leveraged trades in Shanghai and Shenzhen hit a record 2.8 trillion yuan ($412 billion), extending gains for a fourth session, while the Shanghai Composite Index climbed above 4,200 to its highest level in over a decade. Tech shares have surged on AI optimism, lifting the STAR 50 Index and pushing gains in co-packaged o

Risk appetite is returning to China’s tech sector as margin lending, trading volumes, and equity benchmarks rise, driven by expectations that the rally will continue. Outstanding leveraged trades in Shanghai and Shenzhen hit a record 2.8 trillion yuan ($412 billion), extending gains for a fourth session, while the Shanghai Composite Index climbed above 4,200 to its highest level in over a decade. Tech shares have surged on AI optimism, lifting the STAR 50 Index and pushing gains in co-packaged optics and memory chip firms. Analysts warn valuations are stretched, though ample liquidity may sustain momentum despite limited market breadth.