By Jiaxing Li
HONG KONG, Nov 6 (Reuters) - Shanghai's benchmark stock index reclaimed the psychologically important 4,000 level on Thursday, as optimism over tech self-sufficiency boosted semiconductor and artificial intelligence-related shares.
** At the midday break, the Shanghai Composite index .SSEC was up 0.9% at 4,004.25 points. The blue-chip CSI300 index .CSI300 was up 1.3%.
** The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made AI chips, Reuters reported.
** This could be one of China's most aggressive steps yet to eliminate foreign technology from its critical infrastructure and achieve its quest for AI chip self-sufficiency.
** Tech sectors led the gains. The CSI Semiconductor Industry Index .CSI931865 rallied more than 4%, with China's top chip maker SMIC 688981.SS up 3.9% and Cambricon Technologies 688256.SS rising more than 6%.
** The CSI AI sector index .CSI930713 and the info tech sector .CSIINT both gained roughly 2%.
** "Fresh optimism about China's chip self-sufficiency and upcoming technological breakthroughs would continue to support the entire sector's performance despite the rich valuation. There's more upside to go," said Kenny Ng Lai-yin, securities strategist at China Everbright Securities International.
** In Hong Kong, the benchmark Hang Seng Index .HSI was up 1.6% at 26,361.40. The Hang Seng Tech Index .HSTECH jumped more than 2%.
** Cathay Pacific Airways 0293.HK touched a three-month high after announcing it was buying back the entire remaining stake from Qatar Airways.
** Pony AI 2026.HK and WeRide 0800.HK slid as the Chinese autonomous-driving developers started trading in Hong Kong.
** Investors are also awaiting China's October trade data, due on Friday. Forecasts compiled by Reuters show that exports denominated in U.S. dollars CNEXP=ECI likely slowed to a year-on-year growth rate of 3.0%.
(Reporting by Jiaxing Li in Hong Kong; Editing by Subhranshu Sahu)
((jiaxing.li@thomsonreuters.com))