FX.co ★ China Stocks Rise on Analyst Upgrade

On Friday, the Shanghai Composite edged up by 0.1%, reaching approximately 3,880, while the Shenzhen Component increased by 0.3% to settle at 12,910. Both indexes are poised to close the week on a positive note. This uptick followed JPMorgan Chase & Co.'s upgrade of its recommendation on Chinese stocks to ‘overweight,’ pointing to greater potential gains than losses anticipated for the coming year. According to the bank, the driving factors include the adoption of AI, measures to boost consumption, and governance reforms. Significant gains were observed in major companies such as BlueFocus Intelligent, which saw a 2.8% rise, Shenzhen Everwin with a 10% increase, Sungrow Power advancing by 1.2%, Do-Flouride New Materials gaining 3.2%, and Shannon Semiconductor climbing 2%. Conversely, China Vanke experienced a 3% drop following an announcement to postpone an onshore bond repayment for the first time. Despite the week's positive performance, the Shanghai and Shenzhen indexes are on track to register losses of 2% and 3.4% for the month, respectively, largely due to a technology-driven selloff that persisted through much of November.