China strengthens support for stocks to regain investor confidence in AI

China has intensified state intervention in its markets to restore investor confidence in the tech sector, following significant declines. State-associated funds saw inflows of $11.5 billion, with notable investments in ETFs linked to major tech indices. The Star 50 and ChiNext indices experienced gains of 9.9% and 6.4%, respectively. This shift in strategy marks a focus on these indices, deemed crucial for China's economic future. The intervention follows months of selling pressure, particularly on tech stocks, with the CSI 300 index down over 11% this year. Despite renewed state support, small investors remain cautious.