China stocks rally as turnover tops 3 trillion yuan

China’s three major stock indexes closed higher on Monday, with total trading turnover across the Shanghai, Shenzhen and Beijing stock exchanges surpassing 3 trillion yuan ($419.5 billion) — marking only the second time in A-share market history the threshold has been breached.

The benchmark Shanghai Composite Index rose 1.51 percent to close at 3,883.56 points. The Shenzhen Component Index gained 2.26 percent to finish at 12,441.07 points, while the ChiNext Index — China’s Nasdaq-style board for growth enterprises — surged 3 percent to 2,762.99 points.

Leading industry gainers included minor metals, precious metals and communications equipment.

HSBC Global Research attributed the market rally to robust domestic liquidity and raised its year-end 2025 forecast for A-share indexes, citing a potential 5 to 7 percent upside. The firm noted that artificial intelligence remains a key investment theme, particularly AI infrastructure, which stands to benefit from the rising capital expenditures of cloud service providers and growing AI adoption across sectors.

However, some experts argue that the current stock market rally is fueled by a mix of news-driven sentiment and momentum-driven capital flows. They caution investors to remain respectful of market dynamics and vigilant about the risks of a potential correction.