Local server stocks rise on rumors of IBM bank ban

Domestic IT providers likely to see their adoption rate rise, analyst says

Stocks of Chinese information technology companies jumped Wednesday on speculation that China may remove IBM Corp's servers from its banking sector. Industry insiders believe local IT providers are set to be the biggest beneficiaries as the nation's cybersecurity concerns increase.

Yonyou Software Co Ltd, the largest local enterprise software maker by market share, surged by 7.82 percent on the Shanghai Stock Exchange on Wednesday. The CSI 300 Information Technology Index also rose by 2.85 percent, hitting its highest close since May 6. The index monitors top tech companies trading on the Shanghai and Shenzhen stock exchanges.