Post by : Jyoti Gupta

Photo:Reuters

Chinese onshore stocks climbed for a second straight day, nearing a three-month high, as fresh signs of recovery in the country’s manufacturing sector and housing market lifted investor confidence. The rise came amid growing optimism over government efforts to support economic growth through policy measures and innovation.

The CSI 300 Index, which tracks the largest companies in Shanghai and Shenzhen, rose by 0.2 per cent on Tuesday to close at 3,942.76. This brought the benchmark close to the June 25 peak of 3,960.07 — its highest level since March 20. The broader Shanghai Composite Index also gained, ending the day up 0.4 per cent. Markets in Hong Kong remained closed due to a public holiday.

Investor sentiment was buoyed by the latest Caixin/S&P Global survey, which showed that China’s manufacturing sector returned to growth in June. The manufacturing Purchasing Managers' Index (PMI) climbed to 50.4, up from 48.3 in May, beating market expectations and indicating expansion for the first time in months. Meanwhile, home sales also improved, with the top 100 property developers recording a 14.7 per cent jump in sales in June compared to the previous month, reaching a total of 339 billion yuan.

The stock market rally saw several major companies post notable gains. Loongson Technology surged by 6.4 per cent to 141.97 yuan, WuXi AppTec rose 1.7 per cent to 70.70 yuan, and Eastroc Beverage Group added 2.4 per cent to close at 321.70 yuan. However, not all stocks participated in the rise. Chipmaker Cambricon Technologies slipped 6.4 per cent to 563 yuan, and lithium miner Ganfeng Lithium dropped 0.6 per cent to 33.56 yuan.

In a significant debut, Shandong Senter Electronic made its entry into the Shenzhen market with a dramatic surge of 286 per cent, closing at 63.44 yuan.

According to market strategists, the key drivers for China’s stock performance in the year ahead will come from within the country, particularly in areas such as new technology and business innovation. They added that easing global tensions would further improve market sentiment.

China’s total stock market value has grown by 5.6 per cent this year, adding roughly 4.1 trillion yuan (US$29.6 billion), with analysts pointing to strong investor belief in Beijing’s economic support measures. Experts expect the upward momentum to continue in the second half of 2025, especially if the government increases fiscal and credit stimulus to meet its 5 per cent annual growth target.

Elsewhere in Asia, markets showed mixed results. Japan’s Nikkei 225 declined by 1.2 per cent, South Korea’s Kospi advanced 0.6 per cent, and Australia’s S&P/ASX 200 remained mostly flat.