FX.co ★ China Stocks Extend Gains to Multi-Year Highs

On Wednesday, the Shanghai Composite Index increased by 0.3% to approximately 4,095, and the Shenzhen Component Index saw a rise of 0.35% to reach 14,070. This upward momentum in mainland equities signifies their reach towards new multi-year peaks, fueled by optimism surrounding China’s advancements in artificial intelligence and other cutting-edge technologies. Additionally, investor confidence was bolstered by expectations of further policy support, following the central bank's indication of plans to reduce the reserve requirement ratio and lower key policy rates later in the year. Furthermore, trading volume data revealed that activity at the start of the year had notably surpassed the five-year daily average of 1.13 trillion yuan, highlighting ongoing investor engagement and suggesting potential future gains. Significant increases were noted among growth-oriented companies such as Addsino Co, which rose by 6.4%, Zhongji Innolight by 2.5%, Goldwind Sciences by 3.8%, BlueFocus Intelligent by 5.3%, and Beijing Leike Defense Technology by 5.9%.