Chinese Stock Indexes Reach 10-Year Highs

Historical Rise in Chinese Stock Indexes

Chinese stock indexes have shown strong performance, climbing to their highest levels in the past decade. The strong start to the year and record trading volumes have increased investor risk appetite, energizing the markets. The extraordinary increases in stocks related to artificial intelligence and the commercial aerospace industry have been the main drivers of this rise.

Significant Index Performances

China's benchmark CSI300 Index closed the day with a 0.65% increase at 4789.9155 points, while the Shanghai Composite Index rose by 1.09%, reaching its highest level since July 2015 and closing at 4165.287 points. The 3.8% increase recorded last week led the index to its best weekly performance in the last 14 months.

Record Trading Volume and Rising Sectors

On the same day, the trading volume in onshore markets broke an all-time high at 3.6 trillion yuan. In the Hong Kong stock market, the Hang Seng Index increased by 1.44%, while the technology-heavy Hang Seng Tech Index gained 3.1%. Indices related to cloud computing and big data rose by 7.8%, and stocks with a focus on artificial intelligence increased by 4.2%.

Analysts' Expectations for Artificial Intelligence

HSBC analysts have maintained an optimistic outlook for the artificial intelligence sector through 2026. They noted that supportive regulatory policies provide significant advantages to this sector and highlighted that IPOs and funding activities of companies involved in the AI supply chain would support sector valuations and keep demand vibrant in the medium term.

Continued Rise in Significant Stocks

Stocks in the commercial aerospace and space sectors also continued to rise, drawing attention. Shares of China Spacesat reached the daily upper limit with a 10% increase, setting a record, while shares of the Chinese semiconductor manufacturer OmniVision, which went public in Hong Kong, gained 16.2%. Additionally, shares of rare earth elements increased by 3.9% after the announcement that a U.S. official, led by Treasury Secretary Scott Bessent, would call on G7 countries to reduce their critical mineral dependency on China.