EconoScope | Tech bull market emerges as Cambricon briefly overtakes Moutai as China's priciest stock
(ECNS) -- Cambricon Technologies briefly overtook Kweichow Moutai as China's highest-priced A-share stock on Wednesday, signaling a deeper shift in the nation's economic and investment landscape amid a surging technology bull market.
The AI chip developer's shares hit an intraday high of 1,464.98 yuan ($204.78), surpassing liquor giant Moutai before settling lower. Though short-lived, this leadership change was no accident.
Over the past year, Kweichow Moutai declined 3.23% year-to-date, while Cambricon's stock surged from around 200 yuan to over 1,400 yuan.
According to Yang Delong, chief economist at First Seafront Fund, Cambricon's rise reflects a booming technology bull market.
China's advances in AI, semiconductors, and advanced manufacturing —epitomized by Hangzhou's "six little dragons" tech innovators — have fueled investor confidence in long-term tech growth. International investors are shifting from short-term trades to long-term allocations in Chinese tech stocks, fearing they might miss the "tech dividend." A recent report by American Invesco shows nearly 60% of global funds plan to increase Chinese tech investments over five years.
The shift in A-share leadership is more than a change in price rankings, and it signals a profound transformation in China's economic and investment landscape.
For years, Kweichow Moutai symbolized an era dominated by traditional consumer sectors. Cambricon, on the other hand, represents the future of AI, autonomous driving, robotics, and other high-growth emerging industries.
China is at a critical stage of transitioning from old growth drivers to new ones. In the context of a global technology revolution, frontier technologies like AI and new energy are becoming the new engines of economic growth.
From central to local levels, China has introduced policies to accelerate technology and industrial innovation.
In the financial sector, China's regulators are deepening STAR Market reforms, opening green channels for IPOs and expanding science and innovation bond systems to support technology-driven enterprises. These created a multi-layered, full-cycle tech finance ecosystem.
Johnny Chan, an equity investment analyst at Capital Group said that "Don't underestimate China's future innovation; Multiple factors ensure that China will be a powerful player in global innovation."
(By Gong Weiwei)