China’s A-shares and Hong Kong stocks are surging, with the ChiNext Index soaring 3.63% in just half a day today. In the first two hours of trading, the total turnover in Shanghai and Shenzhen markets reached a massive ¥1.15 trillion. Could this be the start of a bull market?
1. Chinese Stocks Surge in the U.S. Market
Last night, global stock markets were anything but calm. The U.S. stock market saw mixed performance:
- The Dow Jones slipped slightly by 0.28%
- The Nasdaq and S&P 500 gained 0.51% and 0.36%, respectively
Meanwhile, OpenAI is pressing forward with its ambitious AI infrastructure projects, helping NVIDIA’s stock recover. But the real stars were Chinese stocks listed in the U.S., which rallied strongly. The Nasdaq Golden Dragon China Index, which tracks major Chinese companies listed in the U.S., surged 2.69%.
2. Bank of England Cuts Rates, European Markets Rally
The Bank of England cut interest rates by 25 basis points to 4.5%, triggering a strong rally in European stocks. Major indices in the UK, Germany, France, Italy, and Spain all jumped around 1.5%, while the Euro Stoxx 50 Index gained 1.62%.
In contrast, the Bank of Japan signaled a more hawkish stance, hinting at an interest rate hike later this year, which led to weaker stock market performance in the Asia-Pacific region—except for China’s A-shares and Hong Kong stocks, which continued to climb!
3. Hong Kong Stocks Are on Fire
Hong Kong’s Hang Seng Index surged nearly 1.4% this morning, but the real excitement came from tech stocks. The Hang Seng Tech Index jumped more than 2.6%, marking an impressive 23% gain over the past 16 trading days.
Investors are rushing to grab Chinese tech stocks. Even Deutsche Bank has acknowledged this trend, stating that it’s becoming hard to buy Chinese stocks at low prices anymore!
4. A-Shares Rally Across the Board
The Chinese A-share market continued its strong upward momentum from yesterday. After opening slightly lower, stocks steadily climbed higher:
- Shanghai Composite Index: +1.33%
- Shenzhen Component Index: +2.52%
- ChiNext Index: +3.63%
- STAR Market Composite Index: +2.63%
Out of nearly 5,000 stocks, 4,933 gained, while only 382 declined. A whopping 1,167 stocks surged over 3%, while only 13 stocks fell more than 3%!
5. Investors Rushing In—A Huge Wave of Capital
The most shocking part? In just two hours, trading volume reached ¥1.15 trillion, up ¥203 billion from the same period yesterday. At this pace, today’s turnover could exceed ¥1.8 trillion.
Trading volume is one of the most difficult metrics to fake in the stock market. When big money flows in, it leaves traces that can’t be hidden. A strong and sustained inflow of capital naturally fuels market momentum.