Chinese Stock Market Surge: A Decade-High Record Driven by Metals and Financials

China's stock markets soared to a ten-year high, primarily lifted by non-ferrous metals and financials in anticipation of the Lunar New Year. Hong Kong's Hang Seng Index similarly advanced. The gains were led by sectors such as non-ferrous metals, buoyed by copper price spikes, and the CSI Insurance Index.

China's stock markets experienced a significant surge on Tuesday, reaching their highest point in over a decade. Investors drove the rally, focusing on non-ferrous metals and financial sectors, buoyed by a positive outlook ahead of the Lunar New Year festivities. Both the blue-chip CSI300 Index and Shanghai Composite Index ascended by 1.2% by midday.

The Shanghai Composite Index achieved its highest level since July 2015. Leading the gains were non-ferrous metals and materials, up 4% and 5% respectively, as copper prices soared to record highs. Notably, shares of Zijin Mining witnessed a 5.7% rise.

The CSI Insurance Index surged almost 6%, driven by stronger expected product sales, while the securities sector climbed more than 3%. UBS analysts noted limited downside risk in January and highlighted investor interest in popular themes. The rise of Chinese equities since December has enhanced investor confidence as many plan to stay active until the Spring Festival in 2026.