** At market close, the Shanghai Composite index was up 1.5% at 3,883.56, the highest since August 2015. That brings its gain since the most recent low in April to over 25%
** The blue-chip CSI300 index added 2.1% to 4,469.22, surpassing the previous intraday peak made last October to reach the highest level since July 2022.
** In a sign of surging market enthusiasm, turnover on the Shanghai and Shenzhen exchanges soared past 3 trillion yuan, marking the second-highest level on record since October 8, when Beijing’s stimulus package ignited a market-wide rally.
** Leading gains on Monday, the property sector jumped 5% as Shanghai became the latest Chinese city to relax home-buying restrictions. Developer China Vanke surged by as much as the 10% daily limit.
** The rare earth sector rallied 6.5% to its highest level since late 2021, following Beijing’s announcement on Friday of new measures to tighten control over supply. ** The semiconductor sector added 1.8% at close after rallying nearly 6% in early trades. Chipmaker Cambricon Technologies jumped 11.3% to a fresh record high. ** “We see the rally continuing on abundant domestic liquidity from deposit migration, fund issuance, and insurance fund buying,” analysts at HSBC Qianhai said in a note. ** The firm also lifted the end-2025 targets to 4,000 for the Shanghai Composite index and 4,600 for CSI 300, suggesting an upside potential of 5-7%.
** Many equity investors believe maturing household deposits are flowing back into equities amid lower rates and rising market optimism, Goldman Sachs noted。
** “There is rising conviction that the market retains significant potential to break previous highs.”
** In Hong Kong, the benchmark Hang Seng Index was up 1.9% to 25,829.91, reaching the highest level since October 2021.
** The tech index rose 3.1%, and the Chinese H-share index listed in Hong Kong rose 1.9%.