The Shanghai Composite jumped 1.14% to 3,844 while the Shenzhen Component surged 2.25% to 12,571 on Thursday, reversing the prior session’s losses as artificial intelligence and semiconductor stocks extended their rally. Earlier this week, China’s State Council unveiled its “AI Plus” initiative aimed at accelerating AI adoption across technology and consumer sectors. Chinese equities have rallied this month on easing US-China trade tensions, expectations of fresh stimulus and supportive market drivers such as stronger fund inflows, rising retail participation and margin buying. Still, Wednesday’s pullback underscored lingering concerns about the sustainability of the rally. Among individual movers, Cambricon Technologies soared 15.7%, extending record gains after the AI chipmaker swung to a first-half profit. Other notable advancers included Eoptolink Technology (15.1%), Victory Giant (19.6%) and Zhongji Innolight (10.4%).