China’s benchmark Shanghai Composite Index (SCI) briefly surpassed the critical 4,000-point psychological level during trading on Tuesday morning, reaching its highest mark since August 19, 2015. This bullish movement is being driven by a combination of strong government supportive measures and growing optimism regarding the country’s economic fundamentals.
The SCI peaked at 4,010.73 before edging down slightly to close at 3,988.22, a 0.22 percent decline for the day. Despite the modest dip at the close, the index has demonstrated significant strength, gaining 19 percent year-to-date as of Tuesday.
Chinese Market Closes above the 4000 line:
Shanghai Composite +0.70% at 4,016.33;
Shenzhen Component +1.95% at 13,691.38;
ChiNext +2.93% at 3,324.27.Nonferrous metals & energy storage concepts lead gains.
#Stock pic.twitter.com/YWxtrcoVzU— China Biz Buzz (@ChinaBizBuzz88) October 29, 2025
The temporary breach of 4,000 points—a level previously broken only in 2007, 2008, and 2015—was hailed by market observers as a key psychological and technical achievement.
“This is a milestone moment for China’s stock market, as the benchmark index has breached the 4,000-point psychological level for the first time in a decade,” noted Yang Delong, chief economist at First Seafront Fund. “The bullish trajectory underscored a significant improvement in market sentiment and investors’ confidence.”
The rally is attributed primarily to policy tailwinds and a structural shift toward high-tech sectors. According to economists, the gains are largely led by technology industries whose development is gaining momentum amid an industrial upgrade. Key sectors include:
- Humanoid robots
- Chips and semiconductors
- Solid-state batteries
- Innovative drugs
- Low-altitude economy
Further reinforcing market confidence was the recent release of the 15th Five-Year Plan (2026-30). The plan’s objectives, which include significant advancements in high-quality development and self-reliance in science and technology, have buoyed investors. A manager from a Shenzhen-based private equity fund emphasized that this focus on quality and sci-tech innovation is expected to draw in more long-term capital, serving as a market stabilizer.
The positive outlook is not confined to domestic analysts. Global financial institutions have also expressed confidence in Chinese equities. Goldman Sachs, for instance, recently projected that Chinese stocks could rise by approximately 30 percent through the end of 2027, citing expectations of a 12 percent compound annual profit growth.
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