21.08.202502:20:05UTC+00China Stocks Hold at 10-Year High

The Shanghai Composite and Shenzhen Component indices remained relatively stable on Thursday, with the former maintaining levels at a decade-long high as investors anticipated new developments to sustain the ongoing rally. In recent weeks, Chinese equity markets have experienced considerable growth, driven by a shift in funds towards equities and an increase in margin buying, comparable to the highs observed during the 2015 bull market. Investor sentiment has been buoyed by the de-escalation of US-China trade tensions and China's initiatives to limit excessive competition. Remarkably, the rally has endured despite the backdrop of weak economic indicators and limited policy interventions. In terms of market movers, ZTE Corp saw a 6.3% increase, IEIT Systems rose by 1.5%, Shenzhen Forms surged by 11.4%, Gigadevice Semiconductor increased by 6.8%, and Cambricon Technologies climbed 2.7%. Conversely, Foxconn Industrial experienced a decline of 4.9%, Wolong Electric decreased by 6.6%, and Zhongji Innolight fell by 3.7%.