SHANGHAI: China stocks climbed to a fresh decade-high on Monday, led by artificial intelligence and commercial aerospace shares as investors cheered a strong start to the year for onshore markets with record turnover. Hong Kong shares also advanced.
China’s blue-chip CSI300 Index closed 0.7 percent higher, while the Shanghai Composite Index gained 1.1 percent to its highest since July 2015 after last week’s 3.8 percent surge - its best weekly performance in 14 months.
Meanwhile, turnover of onshore shares logged a record 3.6 trillion yuan (USD516.13 billion) on Monday.
Hong Kong’s benchmark Hang Seng added 1.4 percent.
HSBC analysts remain upbeat on the outlook for artificial intelligence in 2026, citing supportive regulatory policies.
Recent fundraisings and initial public offerings by companies across the AI supply chain are expected to lift sector valuations and underpin demand and spending in the medium-term, they added.
China’s CSI Cloud Computing and Big Data Index jumped 7.8 percent, while the AI shares rose 4.2 percent. Tech majors traded in Hong Kong advanced 3.1 percent.
Commercial aerospace stocks extended gains, with China Spacesat hitting the 10 percent daily limit to a record high. The rally followed an International Telecommunication Union (ITU) filing, which showed that between December 25 and December 31, 2025, China applied for frequency and orbital resources for 203,000 satellites across 14 constellations.
The CSI Rare Earth Index rose 3.9 percent after a senior US official said Treasury Secretary Scott Bessent will urge Group of Seven nations and others to step up efforts to reduce reliance on critical minerals from China when he hosts a dozen top finance officials on Monday.
The CSI Defence Index jumped 5.9 percent to nearly four-year high.
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