China stocks hit decade high as metals, financials rally

SHANGHAI - China stocks climbed on Tuesday to their highest levels in more than a decade, buoyed by non-ferrous metals and financials, as investor sentiment remained upbeat ahead of the Lunar New Year holiday. Hong Kong shares also climbed.

China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC climbed 1.2% each by the lunch break. Hong Kong benchmark Hang Seng .HSI was up nearly 2%.

The Shanghai Composite Index .SSEC touched its highest level since July 2015.

Non-ferrous metals .CSISNMIM and materials .HSCIM sectors led gains onshore and offshore, up 4% and 5% respectively, as copper prices hit a record high. Shares of Zijin Mining 601899.SS jumped 5.7%.

The CSI Insurance Index .CSI930618 surged nearly 6% on expectations of stronger product sales, while securities .CSI399707 climbed more than 3%.

"Clients see limited downside risk in January, with capital returning to popular themes and a tactical upside window before the holiday lull," UBS analysts said in a note. "The rebound in Chinese equities since December has boosted confidence, with many investors planning to stay active until the later-than-usual Spring Festival in 2026."

The Shanghai Composite Index .SSEC was up more than 6% since mid-December.

UBS is sticking with last year's top picks, remaining overweight on tech and internet stocks, expecting AI progress to continue driving growth. The bank also favors the solar supply chain as a way to benefit from the global expansion of energy storage and China's domestic "anti‑involution" initiatives.

Tech majors traded in Hong Kong .HSTECH extended gains for a third consecutive session, up 2.2%, with Baidu shares 9888.HK up to the highest level since August 2023.

Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips/Reuters