The Shanghai Stock Exchange Composite Index closed at 3,728 on Monday, marking its highest level in a decade and the highest since August 2015 [1]. The index rose 0.9%, driven by a shift of capital from bonds to equities, with small investors playing a key role in the surge [2]. Turnover on mainland exchanges exceeded 2.7 trillion yuan, while margin debt reached levels not seen since 2015, indicating strong investor participation [3].
This upturn followed a 20% rebound from the April slump triggered by sweeping U.S. tariffs under Donald Trump. A recent extension of the tariff truce provided further reassurance, helping to restore confidence among Chinese investors [4]. The market’s performance also reflects a broader shift in capital as investors rotate out of fixed-income assets amid reduced expectations for aggressive monetary easing [5].
Fund managers have expressed optimism about the sustainability of the rally, pointing to…
