No longer ‘uninvestable’! Shanghai index hits decade high; foreign investors eye China’s stock markets again as AI, tariff truce boost confidence

After years of scepticism and branding Chinese stock markets as “uninvestable”, foreign investors are once again turning their attention to Chinese equities, betting on the country’s resilience in artificial intelligence, semiconductors and biotech as well as a growing need for diversification beyond US assets.Progress in China’s AI adoption, its push in semiconductors, and breakthroughs in biotech this year have reassured investors that the Sino-US trade war and Washington’s export restrictions have not derailed innovation in the world’s second-largest economy, Reuters reported.Adding to the momentum, a US-China tariff truce and supportive domestic monetary policy have improved sentiment, helping the Shanghai Composite index touch a decade high last week, while Hong Kong’s benchmark hit a four-year peak.Hedge funds, allocators revisit ChinaForeign early movers have already started returning, lured by the 2025 bull run…