Chinese stock market posts strongest performance in eight years
The Chinese equity market has recorded its strongest performance in eight years, with an initial rally in the technology sector expanding across multiple industries. The MSCI China Index rose 28.1% from the start of the year, marking a second consecutive annual gain and outperforming the S&P 500, which increased by 17.41%. The performance gap between the two markets has become the widest since 2017.
The materials sector emerged as the standout performer: the MSCI China Materials Index surged 108%, its best result since 2003. Mining and metals companies benefited from record prices for precious metals, while demand for copper and aluminium was supported by constrained supply and investment linked to artificial intelligence–related infrastructure.
The healthcare sector also rebounded after a prolonged downturn, with the MSCI China Healthcare sub-index rising by around 50% — its strongest growth since 2020. Despite the market’s positive momentum, investors continue to look toward potential policy stimulus, as broader recovery in 2026 may depend on measures to support consumption and stabilise the property sector.
Analysts note that future performance will largely depend on economic policy decisions, while investor interest in sectors tied to raw materials and emerging technologies remains strong.
