China’s Stock Market Rally Reaches Decade High Amid Shifting Investor Sentiment

Shanghai's benchmark index closed at its highest level since 2015, marking a 20% recovery from April's tariff-driven slump. The resurgence comes as retail investors deploy near-record savings into equities, shifting away from bonds that dominated portfolios during years of underperformance.

Market veterans see structural differences from past false dawns. "This rally has legs," says Shanghai Zige Investment's Wang Huan, citing system liquidity, stabilizing corporate pricing power, and early signs of economic stabilization. The rotation out of fixed income reflects fading expectations for aggressive monetary stimulus.

While AI-related stocks attract attention, the broader momentum stems from regulatory efforts to support growth. The SSE Composite's 0.9% gain to 3,728 contrasts with its decade-long lag behind global peers - a period that included multiple aborted recoveries after the 2015 crash required state intervention.