Overview

• The Hang Seng Index reached roughly 25,120, its highest since November 2021, and the CSI 300 touched its strongest level since November 2024, though intraday swings persist.
• Construction and power stocks led gains after work began on a $170 billion hydropower dam in Tibet this past weekend.
• Traders expect China’s upcoming Politburo meeting to clarify policy on tariff disputes, property-market support and cuts to excess capacity in emerging industries.
• Market sentiment has been supported by easing U.S.-China tensions, planned energy trade talks and a fresh U.S.-Japan tariff agreement.
• Despite the rally, investors remain cautious about high global interest rates and ongoing weak conditions in China’s property sector.