stocks File photo:VCG

Chinese A-share stock market rallied strongly after the New Year Day holiday, with the benchmark Shanghai Composite Index rose 1.14 percent to hover at 4,069.38 points in morning trading on Tuesday, the highest level in a decade. China's strong economic fundamentals back up the spectacular rallying, analysts say.

As of press time, the Shenzhen Component Index edged up 0.81 percent higher to reach 13,940.24 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, inched down 0.04 percent to 3,293.18 points.

In Hong Kong, the Hang Seng Index continues its upward momentum driven by financial sector. The Hang Seng Index rose 1.90 percent, reaching a total of 26,849.73 points, as of press time.

Some analysts pointed out the correlation between the A-shore market and the Hong Kong market, as the two often perform in tandem with each other.

The gain in the new year followed a strong year in 2025, during which the Shanghai Composite Index rose 18.41 percent, marking its best annual performance since 2020. The Shenzhen Component Index and the ChiNext Index gained 29.87 percent and 49.57 percent, respectively, according to the Shanghai Securities News.

Looking ahead to 2026, bullish sentiment toward Chinese assets, particularly Chinese technology companies, has become a consensus among both domestic and foreign institutions. Ample liquidity and market sentiment are cited as the primary drivers for a possible bull run.

Global Times