China stocks jump most since March, AI-linked shares lead

Market Overview - Chinese stocks experienced a rally, with the CSI 300 Index increasing by 2.3%, marking its largest advance since mid-March [5] - The CSI 300 is up 2% for the week after a previous decline of 0.8% over five sessions, indicating a potential resumption of a liquidity-driven rally [5] - Retail investor sentiment is strong, as evidenced by new account openings, margin trading, and fund subscriptions [5] Sector Performance - The smaller chip-focused index, Star50, rose by 5.3%, while the tech-heavy ChiNext also increased by over 5% [2] - Shares of optical transceiver makers Eoptolink Technology Inc. and Zhongji Innolight Co. surged more than 12% [2] Company Developments - Alibaba Group Holding is seeking to raise $3.17 billion through an offering of zero-coupon convertible notes, which is expected to be the largest of the year [5] - Alibaba plans to invest $53 billion over three years in AI infrastructure, including data centers, to establish itself as a leader in AI [5] - Hygon Information Technology Co., an AI chip designer, saw its shares surge by 20%, while Cambricon Technologies Corp. increased by 9% [5] Market Sentiment - The rally is primarily driven by AI thematic sectors, particularly in computing infrastructure [5] - Market sentiment remains robust, supported by Oracle Corp.'s aggressive outlook, which has contributed to optimism in the tech sector [2][5]