SHANGHAI: China stocks ended Tuesday at their highest levels in more than a decade, buoyed by non-ferrous metals and financials, as investor sentiment remained upbeat ahead of the Lunar New Year holiday. Hong Kong shares also closed up.
China’s blue-chip CSI300 Index and the Shanghai Composite Index closed 1.5 percent up each. Hong Kong benchmark Hang Seng was up 1.4 percent.
The Shanghai Composite Index touched its highest level since July 2015.
Non-ferrous metals and materials sectors led gains onshore and offshore, up 4.1 percent and 4.6 percent respectively, as copper prices hit a record high. Shares of Zijin Mining jumped 6.2 percent.
Insurance shares surged, with New China Life Insurance up 6.5 percent as the market expects better product sales in the New Year, while securities climbed more than 4 percent.
“Clients see limited downside risk in January, with capital returning to popular themes and a tactical upside window before the holiday lull,” UBS analysts said in a note. “The rebound in Chinese equities since December has boosted confidence, with many investors planning to stay active until the later-than-usual Spring Festival in 2026.”
Shanghai Composite Index was up more than 6 percent since mid-December.
UBS is sticking with last year’s top picks, remaining overweight on tech and internet stocks, expecting AI progress to continue driving growth.
The bank also favours the solar supply chain as a way to benefit from the global expansion of energy storage and China’s domestic “anti-involution” initiatives.
Tech majors traded in Hong Kong extended gains for a third consecutive session, up 1.5 percent, with Baidu shares hitting its highest level since August 2023.
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