China's start-up board ChiNext Composite Index up nearly 4%

China's start-up board ChiNext Composite Index up nearly 4%

The ChiNext Composite Index, a benchmark for Chinese start-up companies listed on the Science and Technology Innovation Board, has seen a significant rise of nearly 4% over the past week. This surge is driven by a combination of factors, including robust market conditions and the increasing confidence in the Chinese tech sector.

L&T Semiconductor Technologies (LTSCT), the semiconductor arm of the L&T Group, has been eyeing the China market for expansion. According to Sandeep Kumar, the chief executive officer of LTSCT, the company plans to enter China by FY27, focusing on both chip design and sales to Chinese companies. This move is expected to contribute to the broader growth of the semiconductor industry in China, potentially boosting the start-up board's performance [1].

In parallel, the energy sector has also shown signs of resilience. Russian President Vladimir Putin recently announced that the planned 'Power of Siberia-2' gas pipeline would supply China with natural gas based on a market formula. This agreement underscores the growing energy demand in China and the stability of supply from Russia [2].

Meanwhile, in the technology sector, Amazon (AMZN) has made significant strides. The company announced JetBlue as the first airline partner for its Project Kuiper satellite internet service, which is set to start in 2027. This partnership, coupled with Amazon's AI growth projections through Anthropic, has led to a 3% increase in Amazon's stock price. The AI partnership is expected to contribute significantly to AWS growth, with Barclays projecting around 400 basis points per quarter once Claude 5 training and existing inference revenues are fully operational [3].

These developments highlight the dynamic nature of the Chinese and global markets, with start-ups and established companies alike finding new avenues for growth. As investors continue to monitor these trends, the ChiNext Composite Index is likely to remain a key indicator of the tech sector's health and potential.

References:
[1] https://www.business-standard.com/companies/news/lt-semiconductor-technologies-eyes-china-market-expansion-125090101331_1.html
[2] https://fakti.bg/en/world/997906-china-to-receive-russian-gas-under-power-of-siberia-2-at-market-price-putin-says-in-beijing
[3] https://parameter.io/amazon-amzn-stock-jetblue-partnership-sends-shares-soaring-over-3/