CN20250217-China and Hong Kong Stocks Surge Nearly 30% in a Month – Is a Bull Market on the Horizon?

1. Hong Kong Stocks See Strong Gains

Last Friday, while the Chinese A-share market showed modest movement, Hong Kong stocks continued their strong upward trend after the A-share market closed at 3 PM. By the end of the day at 4 PM, the Hang Seng Index had risen by 3.69%, the Hang Seng China Enterprises Index by 4.11%, and the Hang Seng Tech Index by an impressive 5.56%. Between January 14 and February 14, the Hang Seng Tech Index surged by 30.89%, reaching its highest level since October. This is equivalent to the Shanghai Composite Index breaking the 3,700-point mark.

2. Chinese Stocks in the U.S. Also Performed Well

On the same day, although the Shanghai Composite Index edged up by only 0.43%, the A50 futures index gained over 2%, indicating strong confidence from foreign investors. Later that evening, U.S. stock markets showed mixed performance—while the Dow Jones and S&P 500 saw slight declines, the Nasdaq inched up. However, Chinese stocks listed in the U.S. saw significant gains, with the Chinese ADR Index rising by 2.73% in a single session and a total increase of 28.5% over the past month.

3. Key Financial Sector Restructuring

One of the most significant financial developments last week was the announcement that China’s Ministry of Finance would transfer its entire holdings in China Cinda, China Orient Asset Management, and China Great Wall Asset Management to Central Huijin Investment, a subsidiary of China’s sovereign wealth fund. Additionally, 66.7% of China Securities Finance Corporation’s shares will also be transferred to Central Huijin. Some analysts speculate that this move signals potential market stabilization efforts, while others see it as a step toward a more centralized capital management strategy.

4. A-Share Market Sees High Trading Volume

On Monday today morning, within just 2 hours of trading, the total turnover in the A-share market reached RMB 1.28 trillion, an increase of RMB 235.2 billion compared to the same period last Friday. Despite the high trading volume, market indices showed only moderate gains. By midday, the Shanghai Composite Index and the Shenzhen Component Index were up by 0.06% and 0.41%, respectively, while the ChiNext Index and the STAR Market Index had gained 0.61% and 0.7%. Though the index movements were limited, market participation remained highly active.

5. Mixed Performance Among Large-Cap Stocks

Out of 5,397 stocks traded in the A-share market in the morning session, 3,624 stocks gained, while 1,642 declined. Despite a broad market rally, large-cap stocks underperformed, dragging down the overall index. While smaller thematic stocks saw strong performance, the overall A-share market capitalization increased by just 0.43%, with the average stock price rising by 1.17%.

Recent gains across Chinese stocks, from U.S.-listed Chinese companies to Hong Kong and A-shares, suggest renewed investor confidence. However, the relatively weaker performance of large state-owned enterprises in the A-share market has slowed overall index growth. In contrast, the rally has been primarily driven by tech companies, which have a significant market share in U.S. and Hong Kong markets but a smaller presence in A-shares.

That said, there are signs of potential shifts. Major telecom operators, which are state-owned enterprises, have started gaining momentum, and the financial sector is also showing signs of increased activity. Additionally, the restructuring of Central Huijin’s asset holdings may have long-term implications for the market. Given these factors, investors are closely watching whether A-shares will catch up with the strong performance seen in Hong Kong and U.S.-listed Chinese stocks.

Trump’s Latest Interview: Trade Policies, Global Relations, and Economic Strategies

Overview of Trump’s Recent Interview

On February 11, 2025, U.S. President Donald Trump sat down for an interview with Fox News ahead of the Super Bowl. The discussion covered a wide range of topics, including trade policies, international relations, and economic strategies. Fox News anchor Bret Baier, known for his direct questioning, conducted the interview, addressing both Trump’s past decisions and his future plans.

Key Takeaways from the Interview

1. Lessons from His First Term

Acknowledged his initial lack of experience in Washington.
Claimed he had used unqualified personnel but is now better prepared.

2. Views on the U.S. Agency for International Development (USAID)

Stated that many of its projects were unreliable.
Described USAID as “fraudulent” and a “scam.”
Said he tasked Elon Musk with investigating the agency.

3. On Elon Musk’s Role

Reported that Musk provides him with updates.
Expressed admiration and trust in Musk.
Suggested Musk’s team would investigate the Department of Education and the military.
Mentioned Musk’s team consists of highly intelligent individuals.
Assured that Musk wouldn’t personally benefit from these tasks.

4. Trade Relations with Canada and Mexico

Criticized Canada over 30 times during the interview.
Proposed additional tariffs on Canada and Mexico.
Suggested Canada could become the 51st U.S. state.
Argued against “subsidizing” Canada due to trade imbalances.
Stated that if an agreement isn’t reached, the U.S. could impose tariffs of 50-100% on Canadian cars.

5. Tariffs and Economic Policy on China

Indicated current tariffs are just the beginning.
Linked tariffs to addressing fentanyl concerns.
Highlighted China’s dependence on U.S. trade.
Reaffirmed strong relations with Chinese leaders.
Avoided direct criticism of China, instead emphasizing economic discussions.

6. Domestic Political Unity

Questioned the legitimacy of Vice President Kamala Harris’s votes.
Stated that policy differences with Democrats prevent unity.
Suggested economic success is key to national cohesion.

7. Education Policy

Proposed decentralizing education by transferring control to states.
Criticized U.S. education rankings compared to countries like China and Nordic nations.
Claimed Republican-led states manage education better than Democratic-led states.

8. The Gaza Conflict

Stated that Gaza is now uninhabitable.
Proposed relocating Palestinian populations to nearby Middle Eastern nations.
Suggested transforming Gaza into a redevelopment project.
Claimed that funding and support could be secured from Middle Eastern countries.

9. Russia-Ukraine Conflict

Offered vague comments on peace talks.
Deflected questions on how he would negotiate with Russia.
Criticized NATO for inadequate financial contributions.
Suggested the U.S. should reclaim its financial aid to Ukraine through resources like rare earth minerals and oil.

10. U.S. Policy on Iran

Opposed past nuclear agreements with Iran.
Advocated renegotiating a long-term nuclear deal.
Claimed Iran is now in a weaker position and willing to negotiate.

11. Relationship with Congress

Claimed strong ties with Republican lawmakers.
Acknowledged the challenges of governing with a slim House majority.
Called for bipartisan support on tax cuts and government spending.

12. Defense Spending

Supported increasing defense budgets.
Did not elaborate on specific spending plans.
Expressed willingness to negotiate arms reduction with Russia and China.

13. Tariffs and Domestic Economic Impact

Avoided directly addressing inflation concerns.
Suggested tariffs could help reduce the budget deficit.
Proposed imposing new tariffs on steel, automobiles, semiconductors, and chips.

14. Future Leadership within the GOP

Praised Senator J.D. Vance but deemed it too early to discuss his potential as a successor.

Observations on Trump’s Approach

1. Campaign-Oriented Mindset

Continues to emphasize his past successes.
Frequently criticizes President Joe Biden.
Focuses on rhetoric used during his campaign.

2. Self-Promotion and Grand Claims

Frequently highlights his own leadership skills.
Positions himself as a top negotiator and strategist.
Attributes past economic successes solely to his administration.

3. Communication Style

Frequently changes topics and avoids direct answers.
Tends to shift discussions back to his accomplishments and criticisms of Biden.
Often brings up Canada as a target for criticism.

4. Gaps in Policy Details

Lacks clear explanations for tariffs, inflation, and foreign policy decisions.
Provides optimistic projections without specific implementation plans.

5. Approach to Foreign Relations

Takes a strong stance against U.S. allies like Canada and Mexico.
Expresses caution in dealings with Iran and North Korea.
Avoids direct confrontation with China and Russia, suggesting a more strategic approach.

Conclusion

Trump’s interview revealed a mix of aggressive trade policies, strategic foreign relations, and a continued emphasis on his past administration’s achievements. While he remains confident in his approach, his statements often lack clear policy details, particularly on economic and diplomatic challenges. His strategy appears focused on prioritizing short-term victories, especially in dealings with allied nations, while cautiously engaging with global superpowers (you guess who they are)

CN20250213-U.S. Inflation Rises in January: What Does It Mean for Interest Rates and Global Markets?

1. U.S. Inflation Higher Than Expected in January

The latest data from the U.S. Department of Labor shows that the Consumer Price Index (CPI) rose to 3% in January, exceeding market expectations. This marks the largest increase since June of last year. The core CPI, which excludes food and energy costs, increased by 3.3% year-over-year, with rising housing prices being the main contributor to inflation.

2. Will the Fed Still Cut Interest Rates This Year?

The stronger-than-expected inflation data has led to concerns that the Federal Reserve may delay or even reconsider cutting interest rates in 2024. In response to the report, U.S. stock markets experienced volatility, with the Dow Jones falling 0.5%, the Nasdaq rising slightly by 0.03%, and the S&P 500 declining by 0.27%.

3. Chinese and Hong Kong Stocks Surge Despite Market Weakness

Despite a weaker U.S. stock market, Chinese companies listed in the U.S. saw significant gains, rising 2.84% overnight. Since January 14, these stocks have surged by 23.74% over 21 trading days, adding nearly a quarter to their market value. Meanwhile, Hong Kong’s Hang Seng Index also climbed by 1.5% at midday, with the Hang Seng Tech Index gaining almost 27% since mid-January.

4. A-Shares Tech Stocks Show Weakness

Unlike the strength seen in U.S.-listed Chinese stocks and Hong Kong stocks, China’s A-shares market showed a more subdued performance. The Shanghai Composite Index remained largely flat, dipping 0.12% by midday, while the Shenzhen Component Index, ChiNext Index, and STAR Market Composite Index fell by 0.47%, 0.3%, and 1.49%, respectively. Across the market, more stocks declined than advanced, with 1,486 stocks gaining and 3,748 stocks falling.

Some speculative tech stocks that previously surged due to market hype have started to pull back. Certain companies saw significant stock price increases without strong fundamentals, leading to profit-taking by major shareholders. For example, QingCloud Technology (青云科技)’s stock rose nearly 200% in just six trading days before experiencing a sell-off today. This has triggered concerns among investors, affecting broader technology stocks in the A-share market.

However, while short-term corrections are normal, the long-term outlook for major tech companies remains strong. Investors should be cautious about chasing speculative stocks but may find opportunities in well-established technology leaders that have pulled back to key support levels. The broader technology market remains in an uptrend, though fluctuations are expected along the way.

CN20250212-The Federal Reserve Maintains a Cautious Stance, but Hong Kong Stocks Remain Strong—What’s Next for A-Shares?

1. The Federal Reserve Holds Steady on Interest Rates

During a congressional hearing last night, Federal Reserve Chair Jerome Powell stated that the U.S. economy is in good shape and that current interest rate levels are appropriate. He noted that there is no urgent need for further rate cuts. Given that the Fed has already lowered rates three times last year by a total of 100 basis points, the market now expects that this phase of rate cuts has ended, making another cut in March unlikely.

2. Mixed Performance in U.S. Markets, but Hong Kong Stocks Continue to Rise

U.S. stocks showed a mixed performance overnight, with overall momentum appearing weak. This followed a minor pullback in the Hong Kong market yesterday, where stocks briefly dipped to test the five-day moving average. As a result, the index tracking U.S.-listed Chinese stocks fell by 1.77%.

However, Hong Kong’s Hang Seng Index rebounded strongly today, opening 1.09% higher and continuing to climb throughout the morning, at one point gaining over 2%. Since January 14, the Hang Seng Index has surged by more than 14%.

3. A-Shares Remain in a Consolidation Phase

In the A-share market, technology stocks continued to lead, but overall trading remained within a narrow range. The Shanghai Composite Index initially moved higher but later retreated, closing the morning session at 3,317 points, down slightly by 0.01%. The Shenzhen Component Index, ChiNext Index, and STAR Market Index saw modest gains of 0.07%, 0.09%, and 0.36%, respectively, reflecting a largely stable market trend.

4. Market Liquidity Remains Strong

Trading activity remained high, with total turnover in the two mainland stock exchanges reaching 999.9 billion yuan by midday—only slightly lower than the previous day. While the broader market remained range-bound, individual stock performance was mixed, with 1,894 stocks rising and 3,268 stocks declining in the morning session. However, the number of stocks experiencing sharp declines was relatively low, suggesting the potential for further market movement in the afternoon.

5. Technology Stocks Continue to Lead

Sector-wise, technology stocks remained the strongest performers, led by software services, which rose 2.3%. Other sectors, including media and entertainment, mineral products, internet, and electronic components, also showed strength. On the other hand, the non-ferrous metals sector saw a slight decline of 1.38%, though it has still recorded a 6.95% gain so far this year, ranking seventh among 56 industry groups.

The Shanghai Composite Index tested its 60-day moving average again today, briefly breaking above it before retreating. Market sentiment appears to be turning more positive, with growing optimism among institutional investors. Additionally, while major policy support measures have yet to be introduced, expectations are building that they may be on the way.

CN20250211-U.S. Tariffs on Steel and Aluminum: What It Means for China and the Stock Market

The U.S. has announced tariffs of 25% on imported steel and 10% on imported aluminum. How significant is this for the Chinese market? Will it impact A-shares’ upward trend?

1. Strong Performance of U.S.-Listed Chinese Stocks

Last night, major U.S. stock indices rebounded, ending their recent decline. The Dow Jones rose 0.38%, the Nasdaq gained 0.98%, and the S&P 500 increased by 0.67%. Meanwhile, Chinese stocks listed in the U.S. performed even better, rising 2.69% overnight. Since the beginning of the year, these stocks have gained a total of 22.53% over 19 consecutive trading days, compared to the Nasdaq’s 3.28% increase in the same period.

2. New U.S. Tariffs on Steel and Aluminum

The U.S. government announced new tariffs: 25% on imported steel and 10% on imported aluminum. China remains the world’s largest producer of both materials, accounting for 53.7% of global crude steel production and 58.3% of global primary aluminum production in 2022.

3. Limited Impact on China’s Market

However, due to existing trade policies, the U.S. does not import large quantities of steel and aluminum from China. In 2024, the largest supplier of steel to the U.S. is Canada (25%), followed by Brazil and Mexico (12%), with additional imports from South Korea and Vietnam. For aluminum, Canada supplied 79% of the U.S.’s primary aluminum imports in the first 11 months of 2024, followed by Mexico, Australia, and Jamaica.

4. Tariffs Unlikely to Affect China via Indirect Exports

There has been speculation that countries like Canada and Mexico might be re-exporting Chinese steel and aluminum to the U.S., but data suggests otherwise. Canada is the world’s fourth-largest aluminum producer and a key player in steel production and exports. Mexico ranks 15th globally in steel production and is the second-largest producer in Latin America. Their exports to the U.S. primarily come from domestic production rather than Chinese imports.

5. Global Markets Rally While A-Shares and Hong Kong Stocks Adjust

Despite the tariff announcement, global stock markets saw gains, including those in the U.S. and Europe. Canada and Mexico’s markets also moved higher. The decline in A-shares and Hong Kong stocks today appears to be a normal technical correction after recent gains rather than a reaction to the tariffs. The Hang Seng Index fell around 0.6% this morning, while the Hang Seng Tech Index dropped 1.76%, but overall, the market remains stable.

6. A-Shares Show Signs of Stabilization

A-shares experienced some volatility in the morning session, with the Shanghai Composite Index dropping up to 0.53% before recovering. By midday, the decline narrowed to 0.16%, with similar small losses in other key indices: the Shenzhen Component Index (-0.44%), the ChiNext Index (-0.91%), and the STAR Market Composite (-0.56%).

Looking at the broader trend, the Shanghai Composite is currently testing its 60-day moving average. Since mid-January, it has been approaching the 3,400-point resistance level, which may require stronger trading volume to break through. While a long-term technology-driven bull market is taking shape, short-term fluctuations and corrections are expected.

As the market enters its seasonal rally, investors should remain cautious, particularly with highly speculative themes. Risk management should be a priority to navigate potential market shifts effectively.

CN20250210-Global Stock Markets Decline, but Chinese Assets Show Strength

While global stock markets faced a downturn, Chinese stocks, including U.S.-listed Chinese companies, Hong Kong stocks, and A-shares, showed resilience and recorded gains today.

1. U.S. to Announce New Tariffs This Week

During a meeting with Japan last Friday, the U.S. government indicated that it would announce reciprocal tariffs on certain countries this week. Additionally, a 25% tariff on steel and aluminum imports from all countries is set to be announced on Monday. This news has raised concerns that higher tariffs could contribute to inflation in the U.S., potentially leading the Federal Reserve to delay interest rate cuts. In 2025, tariffs and inflation are expected to be key factors influencing global financial markets.

2. Global Stock Markets Experience Declines

Amid concerns over tariffs, U.S. stock markets dropped significantly, with the Dow Jones, Nasdaq, and S&P 500 falling by 0.99%, 1.36%, and 0.95%, respectively. This downward trend extended to global markets, with European stocks broadly declining. In the Asia-Pacific region, most markets followed the same pattern, except for Hong Kong stocks, which remained relatively stable.

3. Strong Performance of Chinese ADRs and Hong Kong Stocks

Despite the weakness in the U.S. market, Chinese ADRs gained 1.75%. Hong Kong stocks also performed well, with the Hang Seng Index reaching its highest closing level since October 8. Meanwhile, the Shanghai Composite Index closed at 3,489 points on October 8, showing that Hong Kong stocks have been leading the recovery.

4. Technology Stocks Drive Market Gains

Since October 14, the Hang Seng Index has risen for 17 consecutive trading days, gaining over 13% during this period. The primary driver behind this rally has been technology stocks. The Hang Seng Tech Index outperformed, surging 24% in the same timeframe, indicating strong momentum in the tech sector.

5. Mixed Performance in A-Share Market

The A-share market showed a mixed trend in the morning session. As of midday, the Shanghai Composite Index and the STAR Market Composite Index rose by 0.31% and 0.82%, respectively. However, the Shenzhen Component Index and the ChiNext Index declined slightly by 0.1% and 0.35%. Market activity remained robust, with total trading volume reaching RMB 1.11 trillion in the morning session, only RMB 367 billion lower than last Friday. The number of advancing stocks (3,399) exceeded declining stocks (1,814).

The overall outlook for A-shares in 2025 is becoming clearer. International investors are increasingly optimistic about the Chinese stock market, accelerating their investment strategies in A-shares and Hong Kong stocks. Domestically, market recovery is evident, with more funds entering the market. Trading volumes have also increased significantly, surpassing RMB 800 billion compared to the last trading day before the holiday.

As the Consumer Price Index (CPI) stabilizes and the post-holiday manufacturing season begins, further policy measures are expected to support economic growth. The market is looking forward to a technology-driven bull run in 2025.

CN20250207-Stock Markets Are Booming! Is the Bull Market Here?

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.

CN20250206-China’s Stock Market Surges: Tech Stocks Still Lead the Way

1. U.S. Stocks Mixed, Chinese Stocks in the U.S. Declined

Last night, major U.S. stock indices saw modest gains of 0.71%, 0.19%, and 0.39%. However, tech stocks showed a mixed performance. Google shares dropped sharply due to higher-than-expected AI investments—Google A fell by 7.29% and Google C by 6.94%. AMD (Advanced Micro Devices) lost 6.27%, while Tesla declined by 3.58%. Meanwhile, U.S.-listed Chinese stocks struggled, falling by 1.97%.

2. Hong Kong Tech Stocks Show Strength

Despite the drop in U.S.-listed Chinese stocks, Hong Kong’s stock market remained resilient. Normally, Hong Kong stocks closely follow the performance of Chinese stocks in the U.S., but today, they moved in the opposite direction. The Hang Seng Index and the Hang Seng China Enterprises Index climbed by over 0.5% by midday, while the Hang Seng Tech Index surged over 1.5%.

3. China’s Stock Market Sees Broad Gains

While China’s stock indices fell yesterday, tech stocks actually performed well. Today, the market fully rebounded, driven by strong tech sector gains. By midday, the Shanghai Composite Index rose 0.76%, the Shenzhen Component Index gained 1.43%, while the ChiNext Index and the STAR Market Composite Index jumped 2.09% and 2.59%, respectively.

4. Market Sentiment is Picking Up

Trading volume continues to surge. Yesterday, the market saw a sharp increase in trading activity, with an additional ¥171.7 billion ($24 billion) in volume. Today, morning trading alone added another ¥79.3 billion ($11 billion), bringing total morning turnover to ¥944.4 billion ($130 billion). This massive increase in liquidity suggests that investors are actively buying the dip, signaling renewed confidence. It also aligns with recent regulatory promises to attract long-term capital into the market before the Lunar New Year.

5. Tech Stocks Lead the Rally

Out of over 5,000 stocks traded, 4,070 saw gains, while only 1,095 declined. Only 55 stocks fell more than 3%, whereas 879 stocks gained over 3%. Tech stocks dominated the top-performing sectors—11 out of 56 industry groups were led by tech, each rising more than 2%. The electrical equipment sector led the way with a 4.56% gain, followed by semiconductors at 3.52%.

With strong capital inflows and government support, the market is preparing for a spring rally. The upcoming 2025 policies are expected to be even more favorable than in 2024. As these policies take effect, investors can look forward to a more optimistic market in the months ahead.

China’s Stock Market Key Indices

China’s stock market comprises several key indices that represent the performance of various segments of its financial markets.

1. Shanghai Stock Exchange

SSE Composite Index (Shanghai Stock Exchange Composite Index): This index reflects the overall performance of all listed stocks (both A and B shares) on the Shanghai Stock Exchange.
SSE 50 Index: Comprising 50 of the largest and most liquid stocks on the Shanghai Stock Exchange, this index represents leading companies in the market.
SSE 180 Index: This index includes 180 representative stocks from the Shanghai Stock Exchange, selected based on sector representation, size, and liquidity.
SSE 380 Index: Focusing on mid-sized companies, this index consists of 380 stocks listed on the Shanghai Stock Exchange.

2. Shenzhen Stock Exchange

SZSE Component Index (Shenzhen Stock Exchange Component Index): Reflecting the performance of 500 stocks listed on the Shenzhen Stock Exchange, this index is a key indicator of the Shenzhen market.
ChiNext Index: This index tracks the performance of the ChiNext Market of the Shenzhen Stock Exchange, which is similar to the NASDAQ and focuses on innovative and fast-growing enterprises.

3. Shanghai & Shenzhen Stock Exchange

CSI 300 Index: A joint venture between the Shanghai and Shenzhen Stock Exchanges, this index includes 300 stocks and serves as a barometer for the performance of China’s A-share market.
CSI 100 Index: This index comprises 100 large-cap stocks from both the Shanghai and Shenzhen Stock Exchanges, representing the top-tier companies in China’s stock market.
CSI 500 Index: Focusing on mid-cap companies, this index includes 500 stocks from the Shanghai and Shenzhen Stock Exchanges.
CSI 1000 Index: This index tracks the performance of 1,000 small-cap stocks from the Shanghai and Shenzhen Stock Exchanges, providing insight into the smaller enterprises in China’s market.

For comprehensive and up-to-date information on these indices, one can visit the official websites of the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

References

Shanghai Stock Exchange http://english.sse.com.cn/markets/indices/overview/
Shenzhen Stock Exchange
https://www.szse.cn/English/siteMarketData/indices/performance/index.html
ChiNext
http://www.cnindex.com.cn/en/module/index-detail.html?act_menu=1&indexCode=399006

CN20250205-Tech Stocks Soar After the Holidays: Is a Tech Bull Market Coming?

The Chinese stock market saw a surge in tech stocks after the holidays, with the STAR 50 Index (China SSE Science and Technology Innovation Board 50 Index) jumping 3.5%! But does this mean a full-fledged tech bull market is on the horizon? Let’s break it down.

1. Hong Kong’s Tech Stocks Lead the Rally (Up 5.06% in a Day!)

The Hong Kong stock market kicked off the post-holiday trading session with a bang, outperforming global markets. By the close, the Hang Seng Index rose 2.83%, and the Hang Seng China Enterprises Index gained 3.51%. But the real star? The Hang Seng Tech Index, which soared 5.06% in just one day!

2. A Tech-Driven Bull Market?

The rally was led by semiconductor giants Hua Hong Semiconductor (+12.66%) and SMIC (+8.47%). What’s fueling this surge?

Breakthrough in China’s 5nm chip technology
China’s tech sector playing catch-up after missing previous global tech rallies

With the global tech race heating up, Chinese tech stocks are finally seeing their long-overdue gains.

3. U.S. Market Impact – Chinese Stocks Shine as the Dollar Weakens

Last night, the U.S. dollar index fell 0.41%, stabilizing U.S. markets after recent losses. But an interesting shift is happening:

China’s AI giant Deep Seek is making waves with its cost-effective and high-performance AI models, shaking investor confidence in U.S. tech stocks.
The “Magnificent Seven” U.S. tech stocks struggled, while Chinese stocks surged 3.33%, outpacing the broader U.S. market.

4. Mixed Performance in the A-Share Market

While global tech stocks soared, China’s A-share market showed mixed trends:

The A50 futures index fell sharply after the opening, dropping 2% intraday due to ongoing trade tensions.
However, tech stocks remained strong, triggering a wave of limit-up gains.
By midday, the Shanghai Composite Index slipped 0.36%, while the Shenzhen Component Index and ChiNext Index edged up 0.44% and 0.50%.
The STAR 50 Index surged 3.50%, driven by tech stocks.

5. Market Sees Heavy Trading Volume

Despite mixed index movements, investor enthusiasm for tech stocks was undeniable.

Trading volume surged to RMB 131.1 billion within just two hours, far exceeding pre-holiday levels.
Total turnover for the two markets reached RMB 865.1 billion.
While a broad market rally seems unlikely, tech stocks are proving to be the main driver of gains in 2025.