Shanghai stock benchmark hits decade high, HK nears 4-year peak

Aug 25, 2025, 11:35 GMT+7
(Reuters) - China and Hong Kong stocks jumped on Monday to extend a rally, led by rare earth and property sectors, as abundant liquidity fuelled continued gains.
** At the midday break, the Shanghai Composite indexwas up 0.9% at 3,858.59, a fresh 10-year high.
** China's blue-chip CSI300 indexadded 1.4%, surpassing the intraday high made last October to reach a four-year peak.
** Turnover on the Shanghai and Shenzhen exchanges surpassed 2 trillion yuan for a ninth consecutive day, extending the longest such streak on record.
** The rare earth sectorwas up 5.6% and the artificial intelligence sectorup 3.5%.
** The property sectorjumped 5.8%, with developer China Vankesurging by the 10% daily limit, as Shanghai eased house purchasing restrictions.
** The semiconductor sector added 1.1% at midday break after rallying nearly 6% in early trades. Chipmaker Cambricon Technologiesjumped 5.5% to a record high.
** "We see the rally continuing on abundant domestic liquidity from deposit migration, fund issuance, and insurance fund buying," analysts at HSBC Qianhai said in a note.
** The firm also lifted the end-2025 targets to 4,000 for the Shanghai Composite index and 4,600 for CSI 300, driven by abundant liquidity, suggesting an upside potential of 5-7%.
** "There was visibly increasing amount of excitement/noise/debates among the onshore retail investors," Goldman Sachs said in a sales note, adding that international investors' interest towards A-share could also follow.
** In Hong Kong, the benchmark Hang Seng Indexwas up 2.1% to 25,866.49, reaching the highest level since October 2021.
** The tech indexrose 3.1%, and Chinese H-share index listed in Hong Kongrose 2%.

Sumber : Reuters