China’s A-share market rebounded on May 22, 2026, with the ChiNext Index climbing 2.84% as computing power and PCB sectors surged. Total market turnover reached 2.9 trillion yuan, with over 3,800 stocks advancing, driven by reports of doubling prices for next-generation AI server hardware.
The recovery followed a period of volatility that analysts described as a transition from indiscriminate selling to a targeted, structural repair. While the broader market showed resilience, the rally was heavily concentrated in technology and hardware, reflecting a sharp pivot toward the AI supply chain.
Hardware Cost Surges Drive AI Chain Rally
The primary catalyst for the day’s activity was news regarding the pricing of next-generation AI infrastructure. According to reporting by Zhonghua Net, the upcoming Vera Rubin (VR200) server racks from NVIDIA are seeing procurement prices from ODMs reach approximately $7.8 million. This is nearly double the cost of the current GB300 Blackwell racks, which are priced under $4 million.
This price jump is not a flat increase but a result of massive cost spikes across specific critical components.
| Component | Cost Increase |
|---|---|
| Memory | 435% |
| PCB (Printed Circuit Board) | 233% |
| MLCC (Multi-Layer Ceramic Capacitor) | 182% |
| ABF Substrate | 82% |
These figures triggered a buying frenzy in the PCB sector, where more than 40 stocks hit their daily limit-up or rose by more than 10%. The rally was further supported by supply-side constraints. The Paper noted that Shanxi Securities expects a continued supply-demand gap for high-end copper foil and electronic cloth through 2026 and 2027, partly because the global delivery cycle for core equipment, such as Toyota weaving machines, exceeds one year.
ChiNext and Shenzhen Component Outperform
The appetite for growth stocks was evident in the indices. The ChiNext Index, a benchmark for China’s innovation board, rose 2.84% to close at 3,938.5 points. The Shenzhen Component Index followed closely with a 2.3% gain, ending at 15,597.3 points. By comparison, the Shanghai Composite Index saw a more modest increase of 0.87%, closing at 4,112.9 points.
Market breadth was overwhelmingly positive. Wind statistics cited by The Paper show that 3,865 stocks advanced, while 1,504 declined. Total turnover across the two main exchanges and the Beijing Stock Exchange was 2.9033 trillion yuan, though this represented a decrease of 578.2 billion yuan from the previous trading session.
Structural Repair and Quantitative Volatility
The nature of the rally suggests a technical correction rather than a fundamental shift in sentiment. Sina Finance characterized the recent price action as a sequence of indiscriminate selling followed by structural repair. Analysts suggest that the previous steep declines were likely exacerbated by quantitative funds executing rigid sell-offs, which in turn created “deep pits” in the technical charts of various sectors.
The morning of May 22 began with a pattern of high opening prices followed by retreats, leading some investors to fear a continuation of the downtrend. However, after 10:30 AM, the market shifted upward unexpectedly, creating new highs in the afternoon session.
One notable example of this volatility was BOE (京东方A). Often viewed as a hub for retail investors due to its massive shareholder base, the stock is typically resistant to consecutive limit-ups. Despite an initial period of stagnation on Friday morning, it surged after 11:15 AM to hit its second consecutive limit-up.
Sector Divergence: AI Gains vs. Consumer Losses
While hardware and AI-related themes dominated the gains, other sectors faced significant pressure. The rally was a zero-sum game for many portfolios, as capital rotated out of traditional staples and financial services.
- Winners: Beyond PCB and MLCC, strength was seen in supercapacitors, robotics, lab-grown diamonds, and ultra-hard materials.
- Losers: The liquor (Baijiu) sector underwent a collective adjustment, with companies like Huangtai Liquor and Jinhui Liquor seeing sharp declines. Non-bank finance and brokerages also struggled, with firms such as East Money and CITIC Construction Investment seeing drops of over 2%.
- Other Declines: Pharmaceutical, biological, and petrochemical sectors also trended downward.
As reported by Financial 界 (JRJ), the AI chain’s dominance extended to the Hong Kong market, where AI-related stocks also saw significant gains, contrasting with the poor performance of catering and brokerage stocks.
Despite the day’s gains, some caution remains. Analysts suggest that after a continuous run of increases, the semiconductor sector may be at a relative high. If buying momentum fades, the market could see a concentrated exit of positions, leading to further volatility in the short term.
