FX.co ★ Shanghai Stocks Hit Fresh 10-Year High

The Shanghai Composite Index advanced by 1.45%, ending Friday at 3,826, while the Shenzhen Component climbed 2.07% to 12,166. The former reached a new decade peak, buoyed by substantial fund reallocations and retail investments. In recent weeks, Chinese stocks have witnessed a significant uptick as investors pivoted from bonds to equities, with margin financing levels echoing those from the 2015 bull market. Market sentiment has been bolstered by an easing of US-China trade tensions and Beijing’s initiatives to reduce excessive competition, despite ongoing domestic economic challenges and limited policy support. Additionally, investors are keenly awaiting Federal Reserve Chair Jerome Powell’s address at Jackson Hole for insights into global interest rate trajectories. Among standout performances, ZTE Corp leaped 9.4%, Cambricon Technologies soared 20%, and Hygon Information also surged 20%. Over the week, the Shanghai Composite showed a gain of 3.49%, and the Shenzhen Component increased by 4.57%.