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25.08.202502:44:14UTC+00China Stocks Extend Record Rally

On Monday, the Shanghai Composite Index advanced by 1.1%, surpassing the 3,860 mark, while the Shenzhen Component rose 1.8% to reach 12,384. The Shanghai benchmark achieved new ten-year highs, driven by robust market momentum. This rally in Chinese stocks has been fueled by a de-escalation in US-China trade tensions, anticipated further domestic policy stimulus, and an overall positive market sentiment. The surge also follows a strong performance from Wall Street on Friday, after Federal Reserve Chair Jerome Powell indicated that the central bank might commence interest rate reductions as early as next month. Looking ahead, investors are keenly awaiting China's latest purchasing managers' index and industrial profits data to gauge the health of the world's second-largest economy. Among significant stock movers, Cambricon Technologies surged 10.8%, China Northern Rare Earth climbed 10%, and Hygon Information soared by 15.3%.

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