Chinese and Hong Kong equities advanced on Monday as market enthusiasm for artificial intelligence expanded into agriculture and biotechnology stocks.

The blue-chip CSI 300 index rose 0.3% by the midday break, signaling a broadening of the recent tech-led rally.

The shift in sector rotation suggests that investors are looking beyond the semiconductor hardware supply chain that has dominated recent trading.

While previous sessions saw gains concentrated in chipmakers and AI infrastructure plays, capital is now flowing into applications and adjacent industries that stand to benefit from AI integration.

This development follows a sharp recovery in Chinese and Hong Kong markets on Friday, which erased losses from a prior session marked by heavy selling in semiconductor stocks.

That rebound was driven by a renewed appetite for technology shares, but Monday's action indicates the momentum is deepening across the market.