China’s Stock Market Rally Sparks Investor Frenzy as Tech Stocks Lead Gains
Shanghai's benchmark index surged past 4,000 points for the first time in nearly a decade, marking a 9% rebound from December lows. The 16-day winning streak represents the longest sustained rally since China's markets opened in the 1990s.
Institutional buyers initially propelled the rally through A500 Index funds, but retail investors now dominate trading volumes. Goldman Sachs projects 14% corporate earnings growth through 2026, with semiconductor firms, AI developers, and biotech companies outperforming.
The People's Bank of China signals continued monetary support, preparing reserve requirement cuts and rate reductions to mobilize 7 trillion yuan in dormant household savings. This liquidity surge coincides with capital flight from China's troubled property sector.