China's tech-focused Star 100 index jumps roughly 2% to 3-year high

China's tech-focused Star 100 index jumps roughly 2% to 3-year high

The China-focused Star 100 index, a benchmark for the tech sector, surged by approximately 2% to reach a three-year high, according to recent market data. The index, which includes major tech companies such as Alibaba, Tencent, and JD.com, has been on an upward trajectory, driven by strong performance in the tech and e-commerce sectors.

Alibaba Group Holding Ltd. reported a significant increase in revenue from China’s AI boom, with its stock jumping 13% in New York trading after the release of its quarterly earnings. The company's AI and cloud computing services also saw a notable increase in EBITDA, up by 26% year-over-year. Despite missing top-line estimates due to the offloading of its supermarket chain Sun Art and department store chain Intime, Alibaba's revenue grew by 10% year-over-year when excluding these businesses [2].

The positive earnings from Alibaba, coupled with the broader tech sector's growth, have bolstered investor confidence in the Star 100 index. The index's performance is also influenced by the ongoing development and adoption of AI and cloud technologies in China, which have shown substantial growth. Additionally, the index's rise can be attributed to the overall positive sentiment in the Asian markets, which have been buoyed by mixed but generally higher performances [2].

However, the index's growth is not without its challenges. The US Commerce Department's move to restrict shipments of goods to chipmaking operations in China could pose a threat to production in the world's largest semiconductor market. This, coupled with the uncertainty over US trade tariffs, adds a layer of risk to the market [1]. Furthermore, political risks in Southeast Asian markets, such as Indonesia and Thailand, are also in focus, potentially impacting investor sentiment [1].

Despite these challenges, the Star 100 index's performance remains robust, reflecting the strong fundamentals of the Chinese tech sector. The index's recent gains suggest that investors are optimistic about the sector's future prospects, particularly in the areas of AI and cloud computing.

References:
[1] https://m.economictimes.com/markets/stocks/news/asian-stocks-retreat-at-open-after-us-tech-selloff/articleshow/123623485.cms
[2] https://www.forbes.com/sites/brendanahern/2025/08/29/china-market-update-alibaba-takes-one-small-step-for-e-commerce--one-giant-leap-forward-on-ai--cloud-week-in-review/