Chinese stocks climbed to their highest levels in a decade, driven by a surge in retail buying as investors rotate from bonds into equities. The Shanghai Stock Exchange Composite rose 1.2% in Monday trading to close at its strongest level since August 2015, extending a roughly 20% rebound from April lows following the tariff tensions with the U.S.

Market activity has picked up sharply: trading volume on mainland exchanges topped 2 trillion yuan (~$278bn) last Wednesday for the first time since February, mainland investors bought a record $4.6bn of Hong Kong stocks, and margin loans to buy equities reached their highest level in ten years, only about 10% below the historic peak. The 10-year Chinese government bond yield rose 3 basis points to 1.78% and the 30-year yield gained 5 basis points to 2.10%.

Year-to-date the SSE Composite is up more than 14%, outpacing major U.S. indices, while the Hang Seng has surged about 28% this year. "We believe the current rally has solid foundations," said Wang Huan of Zhang Investment Management, citing high liquidity, government efforts to ease tariff tensions, and confidence in the domestic economy. #China #Shanghai #HangSeng #stocks #FiatNews