Chinese Stocks Gain 6.53% Cumulatively on Tech Momentum and Policy Support

Beijing | EcoPulse24

Chinese stocks extended their gains as the week began, buoyed by strong investment demand in technology, defense, and clean energy sectors. This momentum was supported by advancements in local technology and expectations of further government backing, driving market indices to multi-year highs and signaling a clear improvement in risk appetite toward Chinese assets.

The Shanghai Composite Index reached 4,136 points, its highest since July 2015, with cumulative gains of 6.53% over the past four weeks and a year-to-date increase of 30.36%. During the session, the index held above 4,130 points, while the Shenzhen Index advanced to 14,210 points, indicating a broad-based market rally.

Technology stocks led the positive performance, supported by major players in artificial intelligence and software, along with defense and new energy shares. This suggests a structural market rise rather than merely speculative moves. The performance comes as investors anticipate the release of Chinese trade data later in the week, seeking further confirmation of robust economic activity.

Analysis:
This sustained rally reflects a shift in investor sentiment toward the Chinese market, where optimism about technological progress aligns with bets on continued policy support. The overall trend points to a broader phase of revaluation, with its sustainability dependent on upcoming economic data confirming the strength of fundamentals.