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The Shanghai Composite Index hit its highest point in a decade, surpassing last November’s peak during a powerful rally, largely driven by gains in insurance stocks. Analysts are optimistic about further growth, citing strong earnings and rising valuations as catalysts.
Today, the index closed up 1.5% at 4,083.67, marking its highest finish since July 2015. It has now posted increases for 13 consecutive trading days, the longest winning streak since 1993. Insurance companies led the charge, with some stocks jumping over 6% in the first two days of the new year.
The Shenzhen Component Index also advanced, climbing 1.4% to close at 14,022.55—its highest level since January 2022. Meanwhile, the ChiNext Index increased by 0.8% to reach 3,319.29, its highest since last October.
China’s major insurers hit new record highs for two days straight. New China Life Insurance closed up 6.5% at CNY80.80 (approximately USD11.58), after an 8.9% surge yesterday. China Pacific Insurance rose 5.1% to CNY47.35, following a 7.5% gain the day before.
Other insurers also saw notable increases. Ping An Insurance rose 2.7% to CNY74.32 (about USD10.65), China Life Insurance added 2.9% to CNY49.67, and The People’s Insurance Company of China climbed 3.9% to CNY9.80.
More optimistic forecasts come from Goldman Sachs, which projects continued gains in China’s equities. In a recent research report, the firm predicted annual increases of 15% to 20% over the next two years, driven by earnings growth of 14% in 2026 and 12% in 2027, along with an approximate 10% rise in valuations.
Last year, the Chinese stock market surged thanks to a boom in technology stocks. The Shanghai Composite increased by 18%, the Shenzhen Component gained 30%, and the ChiNext Index soared 50%.
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