Chinese equities extended their rally in August, with gains largely concentrated in the AI compute chain. While consumer and healthcare sectors took a pause, the strength of the market was underpinned by visible progress and substantial market opportunities across the computing power ecosystem. This reflects both the technological drive and the unique structure and ecosystem of China’s equity market. On the macro front, inflation remains muted, but activity data signalled resilience. The MSCI China Index gained 4.9% and the MSCI China A Onshore Index advanced by 12.8%. Domestic tourism registered a 21% year-over-year increase in the first half of 2025, while county-level regions are emerging as new growth drivers. Household deposits fell by 0.7% in July, representing a withdrawal of over RMB 1 trillion.

China’s equity markets posted solid gains in July, supported by improving sentiment and thematic sector strength. Mainland-listed A-shares outperformed Hong Kong-listed H-shares, reversing the relative outperformance seen in the first half of the year. The rally was led by themes such as computing power, “anti-involution” (efforts to curb excessive internal competition), biotech and new consumption. The MSCI China Index and the MSCI China A Onshore Index were up by 4.8% and 4.4% respectively. Macro-sensitive sectors, including home appliances, real estate, and food & beverage, remained muted. Inflows from retail, pension, and insurance investors remained strong, and average daily turnover surged to approximately CNY 0.8 trillion, up from CNY 0.5 trillion in June.

China was relatively muted in June, with limited policy signals from Beijing and no major announcements. Nevertheless, the equity market held up well, with key indices maintaining their upward momentum driven by improved trade dialogue with the US. and rising confidence in the economy’s stabilisation. The MSCI China, MSCI China All Shares, and MSCI China A Onshore indices saw gains, ending the month up by 3.1%, 2.95%, and 3.46%, respectively. Sector wise, semiconductors, renewable energy, and financials were the major contributors. Retail sales in May rose by 6.4% year-on-year, beating expectations and marking the strongest growth since December 2023.

In May, China's equity markets marked a month of recovery, regaining much of the ground lost following the sharp imposition of Trump-era tariffs around Liberation Day. The MSCI China ,…

China’s equity markets declined by low to mid-single digits in April, marked by heightened intra-month volatility following the unexpected announcement of new Trump-era tariffs. Beneath these headlines, investors broadly sold off companies with significant overseas revenue exposure, while rotating into domestic consumption and self-sufficiency themes, perceived as beneficiaries of the ongoing US-China decoupling.

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.

In November, the Chinese equity market showed significant volatility, with a pattern of early gains followed by a pullback. Small-cap stocks continued to outperform large-cap stocks. The MSCI China, MSCI China A Onshore and MSCI China All Share Indices declined by 4.5%, 1.5%, and 3.3%, respectively. Although the market was down overall, there were some positive sectors including banks, other financials and telecommunications.