China’s stock market posts best performance in eight years
Chinese equities have experienced their strongest growth since 2017, driven initially by a rally in the technology sector that then extended to other industries. The MSCI China index has risen 28.1% year-to-date, marking a second consecutive year of gains and outperforming the S&P 500, which gained 17.41%, Bloomberg reports.
The materials sector led the charge, with the MSCI China Materials index surging 108%, the best performance since 2003. Gold mining companies including China Gold International Resources, CMOC Group, and MMG benefited from record-high precious metals prices. Rising copper and aluminium prices were supported by limited supply and demand from AI infrastructure projects. The healthcare sector recovered from a prolonged slump, with the MSCI China Healthcare sub-index climbing around 50%, its best run since 2020. Market participants are anticipating further government stimulus, as without measures to support consumption and address housing issues, the July rally in 2026 may slow down.
The outlook depends heavily on whether authorities implement additional economic support measures, which will influence the sustainability and strength of the market’s growth.
