Chinese equities have powerfully extended their record rally into the new calendar year. The Shanghai Composite Index achieved a thirteenth consecutive daily gain Tuesday. Furthermore, this specific record rally marks the longest winning streak in thirty-four years. The benchmark index consequently rose 1.5 percent to surpass 4,083 points. This surge represents the index’s highest closing level in a full decade.
Trading activity resumed strongly after the New Year holiday period this week. Major indices in both Shanghai and Shenzhen posted substantial gains accordingly. The Shenzhen Component Index also increased by a robust 1.4 percent Tuesday. Meanwhile, the growth-focused ChiNext Index edged upward by 0.75 percent. Hong Kong’s Hang Seng Index similarly continued its own upward momentum.
This impressive performance follows an exceptionally strong previous year. The Shanghai Composite Index rose over eighteen percent throughout 2025. Additionally, the Shenzhen Component Index gained nearly thirty percent last year. Therefore, this current record rally builds upon established and powerful momentum. Analysts directly attribute the gains to several key fundamental drivers.
Chief economist Yang Delong identified sustained policy support as critical. He also cited a major migration of household savings into capital markets. Furthermore, shifting sentiment among foreign investors is providing substantial momentum. These investors are growing increasingly constructive on Chinese technological innovation. Consequently, this positive sentiment is fueling the ongoing market upswing significantly.
The strong yuan currency is also correlating closely with equity gains. The currency is hovering near a thirty-two month high currently. This currency strength reflects broader macroeconomic stability and confidence. Policy support includes substantial treasury bond funds for consumer trade-ins. Authorities allocated 62.5 billion yuan for this stimulus measure in advance.
International institutions like Goldman Sachs are reinforcing the bullish outlook. Their analysts forecast continued growth of fifteen to twenty percent. They note Chinese equities trade at meaningful valuation discounts currently. Key profit growth drivers include artificial intelligence adoption globally. Chinese companies’ “Going Global” trends also provide major tailwinds.
The market’s sector leadership offers clues about the rally’s nature. Brain-computer interface firms and financial shares led the recent gains. This indicates strong investor appetite for technology and stability. The convergence of these sectors suggests a broad-based market advance. This advance is not limited to a single industry or speculative theme.
Looking ahead, analysts predict a prolonged window of opportunity for growth. The fundamental drivers of the bull run remain firmly intact currently. Policy support in the real economy should further bolster corporate earnings. Therefore, the record rally may have significant room for continuation. Market performance in 2026 will likely extend the 2025 rally accordingly.
This sustained upward movement carries important implications globally. It signals robust confidence in China’s economic management internationally. The rally also provides strong diversification value for international portfolios. Capital migration into Chinese markets should consequently continue accelerating. This trend will likely influence global asset allocation decisions deeply.
In conclusion, Chinese equities are experiencing a historic and multi-faceted surge. The record rally reflects strong fundamentals and deliberate policy support. It also underscores growing international investor confidence measurably. The market appears poised for further gains in the coming months. Observers will monitor whether this momentum can translate into long-term stability. The current bullish consensus suggests a transformative period for Chinese capital markets.
