Chinese Assets Surge 1.23% Led by NIO, Li Auto Gains

In the overnight trading session, Chinese assets experienced a notable surge, with the Nasdaq Golden Dragon China Index rising 1.23% to 7682.41 points, marking a two-month high. The new energy vehicle sector, in particular, showed robust performance, with NIO surging over 7% and Li Auto rising over 6%. This surge in Chinese assets was part of a broader rally in U.S. markets, where all three major indices closed higher.

The technology sector was a standout performer, with NVIDIA and Microsoft both reaching new historical highs. NVIDIA's stock price increased by 0.95%, pushing its market capitalization above 4.2 trillion dollars. This surge came on the heels of an announcement by NVIDIA that the U.S. government had approved the export of the H20 chip to China. This "special edition" AI chip, designed specifically for the Chinese market, will resume sales immediately. Concurrently, NVIDIA launched the RTX Pro GPU, targeted at smart factories and digital twin scenarios.

Microsoft also saw a significant gain, with its stock price rising by 1.20% to a new historical high, pushing its market capitalization above 3.8 trillion dollars. This increase was driven by a collaboration between Novo Nordisk's Novo Nordisk Foundation and the Danish government fund EIFO, each investing 40 million euros to develop the North European quantum plan, QuNorth. The plan's centerpiece will be the world's most powerful quantum computer, Magne, supplied jointly by Microsoft and Atom Computing.

The rally in Chinese assets and the technology sector underscores the growing investor confidence in both regions. The approval of the H20 chip export to China by the U.S. government is a significant development, as it opens up new opportunities for NVIDIA in the Chinese market. The launch of the RTX Pro GPU further solidifies NVIDIA's position as a leader in AI and high-performance computing.

Microsoft's collaboration with Novo Nordisk and the Danish government fund on the QuNorth project highlights the company's commitment to advancing quantum computing technology. The development of the Magne quantum computer is a significant step forward in this field and positions Microsoft at the forefront of this emerging technology.

The surge in Chinese assets and the technology sector is a positive sign for investors, as it indicates strong demand for innovative technologies and a growing appetite for risk. The rally in U.S. markets, coupled with the strong performance of Chinese assets, suggests that investors are optimistic about the global economic outlook. The approval of the H20 chip export to China and the development of the Magne quantum computer are significant developments that could have far-reaching implications for the technology sector and the global economy.