China's Shanghai index hits highest point in 10 years
On Monday, China's Shanghai Composite Index closed at its highest point since August 2015, jumping 1.5% to 3,883.56.
The CSI300 also climbed to levels not seen since July 2022.
Hong Kong stocks are close to a four-year peak too—all thanks to big moves in property and rare earth sectors.
Property and rare earth sectors lead the rally
Trading on the Shanghai and Shenzhen exchanges topped 3 trillion yuan, marking the second-highest level on record since October [likely October 8,] 2024.
Property shares soared after Shanghai relaxed home-buying rules, with China Vanke hitting its daily limit up.
Rare earth companies also rallied over 6% following the announcement of new supply restrictions.
Semiconductor stocks also join the rally
Semiconductor stocks joined the rally—Cambricon Technologies hit a record high—amid an overall market boost from strong cash flow as people move savings into investments while interest rates stay low.
HSBC Qianhai now expects both indexes to keep rising through the end of 2025, and Goldman Sachs says returning household deposits could keep this momentum going for Chinese markets.