2025.08.1507:22:15UTC+00China Stocks Jump on Stimulus Hopes

On Friday, the Shanghai Composite Index advanced by 0.8% to reach 3,697, while the Shenzhen Component Index saw a significant rise of 1.6%, closing at 11,635. The Shanghai Composite achieved a remarkable 3½-year peak, a development spurred by lackluster economic figures that have heightened expectations for new stimulus measures from Beijing aimed at bolstering economic growth in the face of US tariff challenges. China's industrial production experienced a rise of 5.7% in July, a decline from June's 6.8% and falling short of the anticipated 5.9%. Additionally, retail sales climbed by 3.7%, down from June's 4.8% and considerably below the 4.6% consensus prediction.

In recent weeks, Chinese stocks have witnessed a resurgence in buying interest, marked by margin financing exceeding 2 trillion yuan, a threshold last observed during the bull market of 2015. Market participants are now looking ahead to the upcoming policy decision by the People's Bank of China (PBOC), where loan prime rates are anticipated to remain steady. Among the top-performing stocks were East Money, which surged by 9.9%, Citic Securities, up 4.9%, Beijing Compass with a remarkable 20% gain, Hithink Royalflush growing by 16.3%, and Wolong Electric, up by 10%.