Shanghai stock benchmark edges higher, set for longest winning streak since July

SHANGHAI: Shanghai stock benchmark edged higher on Wednesday and looked set for a sixth straight winning session, while Hong Kong shares advanced, supported by regional market strength in holiday-thinned trading.  

• By the midday break, the Shanghai Composite index was up 0.24%. If the gains hold through the close, it would have logged its sixth consecutive advance, the longest winning streak since July.
• China’s blue-chip CSI300 index slipped 0.12%.
• Global investors are increasing their wagers on Chinese artificial intelligence companies, betting on the next DeepSeek and seeking to diversify, with concerns growing about a speculative bubble in the sector on Wall Street.
• So far this year, the Shanghai stock index is up 17.2%? and the CSI300 has risen 17.3%, while China’s H-share index listed in Hong Kong is up 22.3%.
• “We expect the bull run to continue, but at a slower pace,” analysts at Goldman Sachs said in a note.
• “This is reminiscent of an equity cycle transition from Hope to Growth where both earnings realization and moderate PE expansion in the latter typically supersede strong but volatile re-rating gains in the former to drive returns,” they said, expecting Chinese stocks to rise 38% by end-2027.
• President Trump’s administration on Tuesday said it will slap tariffs on Chinese semiconductor imports over Beijing’s “unreasonable” pursuit of chip industry dominance, but would delay the action until June 2027.
• In Hong Kong, the benchmark Hang Seng Index rose 0.17%, while the tech index gained 0.19%.
• Hong Kong’s market will be closed for the afternoon session on Christmas Eve and will remain shut on Thursday and Friday for the Christmas holidays.
• Trading will resume on December 29.
• Asian shares advanced on Wednesday, capping a year of brisk AI-driven gains, while commodities such as gold and silver extended their bullish run to new all-time highs as 2025 draws to a close.
• Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.36%, while Japan’s Nikkei index was up 0.08%.‑Reuters