Shanghai Stocks Surge on Strong Export Data and Stable Relations

Mainland China and Hong Kong stocks experienced gains, with the Shanghai Composite reaching its highest point since 2015. This surge came amid strong export data and a trillion-dollar surplus. The market outlook remains stable with strong U.S.-China relations and robust tech share performances despite Trump's trade-related policies.

Stocks in mainland China and Hong Kong soared on Wednesday, with Shanghai's benchmark index reaching a decade-long high, buoyed by positive trade data. At the midday break, the Shanghai Composite index witnessed a 1.2% increase to 4,188.24 points, the highest point since June 30, 2015, and the blue-chip CSI300 index rose by 1.08%.

Smaller indices also saw gains, with the Shenzhen index rising 2.13% and the ChiNext Composite index increasing by 2.24%. Shanghai's tech-centric STAR50 index surged by 3.71%. This positive momentum follows China's impressive export growth in 2025, achieving a record trillion-dollar surplus amid ongoing international trade challenges.

Despite domestic demand concerns, experts like Zhiwei Zhang, chief economist at Pinpoint Asset Management, suggest that strong export growth and stable U.S.-China relations could keep macroeconomic policies steady. Additionally, technology shares gained traction, with considerable rises in AI stocks following approvals of Nvidia's H200 chip sales to China. Investors continue to await China's credit lending data due this week for further economic insights.

(With inputs from agencies.)