MSCI China Index: A Surge in AI and Tech ETFs Amidst Policy Support

In a remarkable display of market dynamics, the MSCI China Index, a barometer for China’s stock market performance, has witnessed significant movements, particularly in the technology and AI sectors. As of April 30, 2025, the index closed at 8172.71, reflecting a robust market sentiment fueled by policy support and technological advancements.

AI+ Industry Gains Momentum

The spotlight shines on the 科创信息技术ETF摩根 (588770), which surged over 1% on April 30, 2025. This ETF, closely tracking the 上证科创板新一代信息技术指数 (000682), saw a strong performance with a 1.36% increase. Notably, companies like 翱捷科技 (688220) and 中科星图 (688568) experienced significant gains, underscoring the sector’s vitality.

This surge is attributed to the recent release of Qwen3, a new-generation hybrid reasoning model by 阿里巴巴通义千问, which has shown competitive results in authoritative evaluations. The model’s efficiency and smaller size, yet powerful performance, have been pivotal in driving the AI+ industry forward.

Policy Support Fuels Growth

The AI+ industry’s growth is further bolstered by the dense release of supportive policies. The Ministry of Industry and Information Technology, among other departments, has launched an application pilot for AI-enabled pharmaceuticals, indicating a structured approach to nurturing the AI+ sector. The support from tech giants like Alibaba, Tencent, and Baidu for the MCP protocol highlights the industry’s potential for standardized development.

Pop Mart’s Record-Breaking Performance

In another significant development, Pop Mart International Group, known for its Labubu dolls, saw a major shareholder sell a $101 million stake after its shares hit a record high. This move came shortly after the company reported a profit more than double the previous year, thanks to the popularity of its products among celebrities, including K-pop star Lisa from Blackpink. Despite a slight dip in shares, Pop Mart remains the top gainer in the MSCI China Index over the past year, with shares jumping over 470%.

MSCI China A50 ETFs Show Strong Performance

The MSCI China A50 ETFs, representing core A-share assets, also demonstrated strong performance with a significant increase in trading volume. The 汇添富MSCI中国A50互联互通ETF (560050) and 华夏MSCI中国A50互联互通ETF (159601) saw their trading volumes increase by 102.05% and 83.54%, respectively. This uptick reflects investor confidence in China’s core assets amidst policy support and economic growth prospects.

Conclusion

The MSCI China Index’s performance, particularly in the technology and AI sectors, underscores the impact of policy support and technological advancements on market dynamics. With significant gains in ETFs tracking the AI+ industry and core A-share assets, the index reflects a positive outlook for China’s stock market. As the AI+ industry continues to receive policy backing and companies like Pop Mart achieve record-breaking performances, the MSCI China Index is poised for further growth, highlighting the resilience and potential of China’s economy.