The Shanghai Composite surged 1.45% to close at 3,826 on Friday, while the Shenzhen Component rallied 2.07% to 12,166, with the former scaling a new decade high as strong fund rotations and retail buying fueled the rally.
Chinese equities have advanced sharply in recent weeks as investors shifted out of bonds into stocks, with margin financing climbing to levels last seen during the 2015 bull market.
Sentiment has also been underpinned by easing US-China trade tensions and Beijing’s moves to curb excessive competition, even as domestic economic data remain weak and policy support relatively modest. Investors also looked ahead to Federal Reserve Chair Jerome Powell’s Jackson Hole speech for signals on the global interest rate outlook.
Among notable movers, ZTE Corp jumped 9.4%, Cambricon Technologies surged 20%, and Hygon Information soared 20%.
For the week, the Shanghai Composite rose 3.49% and the Shenzhen Component gained 4.57%.
