Chinese Stocks Start the Year Strong: Shanghai +0.9%, Shenzhen +1.8%

Chinese stocks kicked off the new year with clear gains as markets resumed trading after a long holiday.

Robust momentum in technology and artificial intelligence stocks supported the rally, while recent geopolitical tensions had a limited effect on risk appetite.

The Shanghai Composite Index rose 0.9%, surpassing 4,000 points, and the Shenzhen Composite Index climbed 1.8% to 13,760 points, both reaching their highest levels in several weeks.

Technology shares led the advance, continuing last year's momentum amid strong investment in AI companies.

Notable gainers included Zhejiang Sanhua (+3.2%), BlueFocus Intelligent (+5.7%), Leo Group (+9%), Zhongji Innolight (+1.7%), and GigaDevice Semiconductor (+10%).

Clean energy and defense stocks also posted solid performances, with Goldwin Science Technology rising 9.2% and China Satellite Communications up 4.8%, reflecting growing interest in strategic sectors.

On the economic front, a private survey indicated that China's economic activity expanded for the seventh consecutive month in December, supported by improved service sector activity and a rebound in industrial output, boosting investor confidence at the start of the year.

Meanwhile, markets largely shrugged off recent geopolitical developments following the US attack on Venezuela and the detention of President Nicolas Maduro, with little negative impact on Chinese investor sentiment.