Chinese Stocks Rise for Ninth Consecutive Session on Fiscal Stimulus and Global Optimism

Shanghai | EcoPulse24

Chinese stocks continued their upward momentum on Monday, with the Shanghai Composite Index rising by 0.4% to approximately 3,980 points. This marks the ninth consecutive session of gains - the longest streak since April. The Shenzhen Composite Index also advanced by 0.3% to 13,640 points, its highest level in two months, reflecting improved sentiment in the Chinese stock market during the final week of the year.

This positive performance followed Beijing's announcement of plans to increase fiscal spending aimed at boosting domestic consumption and stimulating investment, moves that have reinforced investor confidence in China's economic growth prospects. The Chinese Ministry of Finance stated that priorities for 2026 will focus on strengthening the domestic market by raising consumer demand and directing investments toward public services. These plans were highlighted after the conclusion of the two-day National Financial Work Conference.

Chinese stocks also benefited from positive global market sentiment, with U.S. and international equities trading near record highs as part of the so-called "Santa Claus rally" - a seasonal phenomenon that often boosts risk appetite and may signal early trends for equity markets in the new year.

Among individual stocks, several blue chips outperformed: Cambricon Technologies surged 7.2%, Foxconn Industrial rose 3.7%, PetroChina gained 2.2%, China Construction Bank added 1.2%, and China Shenhua Energy climbed 0.9%, all contributing to broader index gains.

The sustained rally in Chinese markets reflects a notable improvement in investor confidence, supported by growing expectations for expansionary fiscal policy to underpin growth, along with the positive impact of global market trends. Investors are now watching for further signals regarding China's economic policies for 2026.