BUSINESS Chinese stocks rebound from 14-month lows as AI firms unveil stellar forecasts

Chinese Stocks Rebound From 14-Month Lows on AI Buybacks

Quick Answer: Chinese stocks rebounded on Friday, 16 October 2026, after hitting 14-month lows, as at least 10 AI supply chain companies announced buyback or stock purchase plans. The blue-chip CSI300 Index was up 0.8% at lunch but is still set for a roughly 3% weekly drop and a 10-week losing streak. The source names no Bursa Malaysia-listed company, so this is a sentiment signal to track rather than a company-specific result.

The Shanghai Composite Index rose 1%. Still, the **CSI300** is set for a roughly 3% weekly drop, its worst showing since July.

Why Did **Chinese Stocks** Rebound From 14-Month Lows?

Chinese stocks rebound from 14-month lows as AI firms unveil stellar forecasts
Chinese stocks rebound from 14-month lows as AI firms unveil forecasts

Thursday brought heavy selling in AI stocks, driven by concerns over big spending on AI infrastructure as borrowing costs rise. Wall Street rebounded overnight, and South Korea and Japan bounced in turn.

Jitters also eased in China, where tech shares recouped some of their recent losses.

Chinese Stocks Rebound From 14-Month Lows on AI Buybacks
Photo: Free Malaysia Today

Which AI Supply Chain Firms Announced Buybacks?

At least 10 AI supply chain companies announced share buyback or stock purchase plans. **Eoptolink**, an optical transceiver maker, and **Piotech**, a chip equipment maker, were among them.

Did Chip Makers Post Strong Q3 Profit Forecasts?

Yes. **MetaX Integrated Circuits** and **Hygon Information Technology** published third-quarter profit forecasts that signal torrid growth.

A string of other tech companies also released Q3 profit forecasts in the same period.

What Is Morgan Stanley Warning About China Equities?

**Morgan Stanley** said in a China equity strategy report on Friday that sentiment remains subdued amid global liquidity headwinds. The bank added that weak domestic demand and less-supportive liquidity and flows continue to limit index upside.

What Did Fed Chair Kevin Warsh Say About AI?

Speaking at a meeting in Bangkok on Friday, US Federal Reserve chair **Kevin Warsh** said he was optimistic about AI and believed it would change the real economy. He said its near-term impact on employment is uncertain.

Warsh also said the Fed needs to think about financial stability risks, as traders closely monitor the US monetary policy path.

Which China and Hong Kong Sectors Led the Gains?

Real estate, gold and defense stocks led the gains in China on Friday, rising more than 3%. In Hong Kong, biotech and property shares jumped.

Does This Rebound Reach Bursa Malaysia Stocks?

The source article names no Bursa Malaysia-listed company, so it gives no Berhad share price, earnings or dividend figures to compare. Investors with China or Hong Kong exposure may want to watch whether the buyback plans and Q3 forecasts spread beyond the AI names. Those tracking AI themes can compare research approaches in our AI Stock Analysis for Malaysians guide.

Key Takeaways

  • The CSI300 was up 0.8% at lunch, while the Shanghai Composite rose 1%.
  • The CSI300 is still set for a roughly 3% weekly drop and a 10-week losing streak.
  • At least 10 AI supply chain firms, including Eoptolink and Piotech, announced buyback or stock purchase plans.
  • MetaX Integrated Circuits and Hygon Information Technology published Q3 profit forecasts signaling torrid growth.
  • Morgan Stanley says sentiment remains subdued amid global liquidity headwinds.

Frequently Asked Questions

Why did Chinese stocks rebound on Friday?

Chinese stocks rebounded after a rebound on Wall Street overnight eased jitters from Thursday’s heavy selling in AI stocks. At least 10 AI supply chain companies, including Eoptolink and Piotech, also announced buyback or stock purchase plans.

How much did the CSI300 Index rise?

The CSI300 Index was up 0.8% by the lunch break on Friday, 16 October 2026. It is still set for a roughly 3% weekly drop, its worst showing since July.

Which Chinese AI companies published Q3 profit forecasts?

MetaX Integrated Circuits and Hygon Information Technology published third-quarter profit forecasts that signal torrid growth. The source does not give their forecast figures.

Does the Chinese stocks rebound directly affect Bursa Malaysia shares?

The source names no Bursa Malaysia-listed company, so it cannot confirm any direct effect on Bursa stocks. Shareholders should check each company’s own announcements on Bursa Malaysia.

Disclaimer: This article is for general information only and is not financial advice. It is based solely on the FMT report on Chinese stocks published on 16 October 2026. Always do your own research before making any investment decision.


Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.


Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

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