SHANGHAI, Nov 25 (Reuters) - China stocks rebounded from

a two-month low on Tuesday, led by tech shares, as sentiment

improved on signs of easing geopolitical tensions and as global

markets brushed off concerns that the AI sector is overheating.

Hong Kong shares were also up.

** China's blue-chip CSI300 Index was up 1.3% by

the lunch break, while the Shanghai Composite Index

gained 1.1%. Hong Kong's benchmark Hang Seng rose 0.6%.

** President Donald Trump touted relations with China as

"extremely strong" on Monday following a call with Chinese

leader Xi Jinping, who told Trump that Taiwan's "return to

China" is a key part of Beijing's vision for the world order.

** AI-related shares led gains onshore, up 3%,

while the CSI 5G Communications Index gained nearly

5%.

** Meanwhile, tech majors traded in Hong Kong rose

1.2%, following an overnight rally in their counterparts traded

in New York. The index is down nearly 20% from a four-year peak

hit in early October.

** Investors have been taking profits on most days this

month in sectors that have rallied strongly in 2025, including

technology and innovative drugs.

** "We believe the current tech rally is far from over and

is likely to resume after a short-term pullback. The key reason

is that a fundamental reversal in the U.S. AI industry appears

unlikely, which should leave ample room for valuation expansion

among comparable A-share companies," analysts at Zhongtai

Securities said in a note.

** Shares of Alibaba ( BABA ) were up 2.4% ahead of its

earnings later in the day, which could affect sentiment among

Chinese tech companies.

** Shares of Xiaomi ( XIACF ) jumped most in near 7 months

after its founder and chairman Lei Jun bought shares in the open

market.