The Chinese equity market showed a relatively positive trend in March. The market continued its spring rally during the first half of March, with risk appetite maintained during the "Two Sessions" period. Investments remained focused on policy-driven momentum and emerging industry trends. However, approaching the latter half of the month, the market was affected by the earnings reporting season. In early March, a three-year-old Chinese startup made global headlines with the launch of its first general AI agent, Manus.

In February, the Chinese equity market saw a volatile rally followed by a sharp pullback. A-shares and H-shares surged early in the month fuelled by policy expectations and a tech…

China’s AI and tech sector is advancing rapidly, driven by a skilled workforce, strong government support, and a vast data ecosystem. The launch of DeepSeek’s latest AI model highlights China’s ability to innovate despite US technology restrictions. Entrepreneurs and engineers continue to push boundaries, making breakthroughs in AI applications. With robust venture capital backing and a thriving startup culture, China is cementing its position as a global AI leader.

In December, the Chinese equity market experienced a rise followed by a pullback. However, offshore (Hong Kong) stocks still ended the month in positive territory, helping the overall indices to a positive end to the year. Benefitting from the year-end effect, dividend stocks have risen, while certain AI-related concepts still have momentum. Overall, the market remained in a consolidation phase following the rally since late September.