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The primary stock index of mainland China, the Shanghai Composite, hit its highest intraday point in a decade on August 18, sparking optimism among analysts that a bullish trend might persist. The index increased by 0.9% to close at 3,728.03, after reaching an intra-day peak of 3,745.94—the highest since August 2015 and surpassing the previous peak from February 2021.
Meanwhile, the Shenzhen Component Index advanced by 1.7% to 11,835.57, and the ChiNext Index jumped by 2.8% to 2,606.20, both marking their highest intraday levels in over two years. Trading activity across Shanghai, Shenzhen, and Beijing markets saw a significant boost, with total volume rising 24% from the previous day to approximately 2.8 trillion Chinese yuan (around $390 billion). More than 4,000 stocks gained value across the exchanges, while about 1,000 declined.
A securities strategist at Cinda Securities suggested that the market might be entering the early stages of a new bullish cycle. Although trading volumes have grown since the rally started in April, they are still below the levels seen during last October’s surge. Additionally, securities financing remains relatively limited, the analyst noted.
The researcher also highlighted that upcoming volatility could arise as companies begin releasing interim results in late August. However, this is unlikely to impact the overall upward momentum. Future policy directions, including the 15th Five-Year Plan (2026–2030) and outlooks for 2026, could further underpin market growth.
An expert at a leading Hong Kong-based research center indicated that sustained gains will depend on several factors: the macroeconomic situation, corporate earnings, policy measures, and global economic conditions. If economic growth remains steady, corporate profits increase, and supportive policies continue, the market could continue to rise. Nonetheless, while investor sentiment is currently optimistic, maintaining caution and robust risk management is crucial.
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