China’s A-shares rally as ChiNext hits 3-year high

China's three major A-share indexes rose across the board on Wednesday, with more than 4,400 stocks advancing. Leading the rally, the ChiNext Index, which tracks growth-oriented companies, climbed 2.28 percent to 3,185.57 — its highest level in more than three years — after opening lower.

Analysts at Changjiang Securities remain bullish, expecting the stock market to maintain its upward momentum, citing ample liquidity and a backdrop of gradual economic recovery.

At the close, the benchmark Shanghai Composite Index rose 0.83 percent to 3,853.64, while the Shenzhen Component Index jumped 1.80 percent to 13,356.14.

Tech-heavy sectors, including semiconductors, gaming, and robotics, led the rally. Shares of chipmakers extended their strong momentum, solid-state battery stocks surged, and gaming names staged a strong afternoon rebound. Robotics firms also gained after upbeat remarks from Unitree Robotics CEO Wang Xingxing at the Qualcomm Snapdragon Summit, where he said humanoid robots could be capable of full-scale work as early as next year.

Wednesday also marked one year since financial regulators rolled out a package of measures on Sept 24, 2024, to stabilize China’s capital market, an event widely referred to as the “924 rally”.

Over the past 12 months, the total market capitalization of A-shares has expanded from 68 trillion yuan to 104 trillion yuan, an increase of about 36 trillion yuan. Data from East Money Information’s Choice platform showed that four major indexes, including ChiNext and STAR 50, had more than doubled in value. More than 1,500 stocks surged over 100 percent, with 35 rallying more than 500 percent.

Wang Qing, chairman and chief economist of Chongyang Investment, said the decisive policy shift starting in September 2024 laid a solid foundation for both the economy and capital markets. Coupled with advances in new quality productive forces, he argued, the past year has represented a structural re-rating of Chinese equities.