China's share benchmark hits 10-year high: Here we decode why

China's share benchmark hits 10-year high: Here we decode why

Chinese and Hong Kong stock markets surged today, led by the rare earth and property sectors.

The Shanghai Composite index closed 1.5% higher at 3,883.56, the highest since August 2015.

This marks a more than 25% gain since its most recent low in April.

Meanwhile, the blue-chip CSI300 index rose by an impressive 2.1%, closing at a new high of 4,469.22. It is the highest since July 2022, after surpassing last October's intraday peak earlier in the session.

Property sector leads gains

The Shanghai and Shenzhen exchanges witnessed a massive trading volume, crossing CNY 3 trillion.

This is the second-highest on record since October 8, when Beijing's stimulus package triggered a market-wide rally.

The property sector led the gains with a 5% jump as Shanghai became the latest Chinese city to ease home-buying restrictions.

Developer China Vanke surged by its daily limit of 10%.

Rare earth and semiconductor sectors witness massive rallies

The rare earth sector also witnessed a massive rally, jumping 6.5% to its highest level since late 2021.

This came after Beijing announced new measures to tighten control over supply.

The semiconductor sector gained 1.8% at close after an early trade rally of nearly 6%.

Chipmaker Cambricon Technologies saw a whopping jump of 11.3%, hitting a record high during the session.