22.08.202502:30:13UTC+00Shanghai Stocks Scale Decade High

On Friday, the Shanghai Composite Index increased by 0.3% to surpass the 3,780 mark, while the Shenzhen Component Index saw a 0.6% gain, reaching 11,990. This movement pushed the Shanghai Composite to a new decade high, driven by robust fund reallocations and increased retail investing, which sparked a prolonged market rally. In recent weeks, Chinese stocks have experienced a notable upturn as investors reallocated funds from bonds to equities, evidenced by a rise in margin financing reminiscent of the 2015 bull market peak. Market sentiment has also been buoyed by a reduction in US-China trade tensions and Beijing's initiatives to moderate excessive competition, despite weak domestic economic indicators and limited policy support. Attention now shifts to Federal Reserve Chair Jerome Powell’s forthcoming speech at Jackson Hole, as investors seek insights into the global interest rate trajectory. Notable stock performers include China Northern Rare Earth, which surged 6.9%, Cambricon Technologies, climbing 13.5%, and Hygon Information, which soared by 15.8%. For the week, both the Shanghai and Shenzhen indices are on track to achieve gains exceeding 2% and 3%, respectively.