China stocks hit decade high as metals, financials rally

SHANGHAI: China stocks climbed on Tuesday to 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 climbed.  

• China’s blue-chip CSI300 Index and the Shanghai Composite Index climbed 1.2% each by the lunch break. Hong Kong benchmark Hang Seng was up nearly 2%.
• The Shanghai Composite Index touched its highest level since July 2015.
• Non-ferrous metals and materials sectors led gains onshore and offshore, up 4% and 5% respectively, as copper prices hit a record high. Shares of Zijin Mining jumped 5.7%. The CSI Insurance Index surged nearly 6% on expectations of stronger product sales, while securities climbed more than 3%.
• “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.”
• The Shanghai Composite Index was up more than 6% 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 favors 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 2.2%, with Baidu shares up to the highest level since August 2023.