Experts are expressing strong optimism about the Chinese stocks as the market logged its best weekly performance in 16 years, buoyed by a slew of government stimulus measures.
While the Shenzhen Component Index surged 6.7 percent the benchmark Shanghai Composite Index advanced by less than 3 percent. This was most likely due to system glitches, resulting in slow transaction confirmations. The Nasdaq-style ChiNext Index skyrocketed 10 percent, the best daily performance to date. On a weekly basis, the Shanghai Composite gained 13 percent, the Shenzhen Component 18 percent and the ChiNext 23 percent. The upbeat sentiment was shared by investors in Hong Kong where the Hang Seng Index gained 3.5 percent.
This comes after Beijing announced measures to boost the economy, including cutting the reserve requirement ratio by half a percentage point and cutting the 7-day reverse repo rate by 0.2 percentage points to 1.5 percent, with effect from Friday.
Last week, the US Federal Reserve also cut its interest rates by half a percentage point.
Wall Street is also jumping in on Chinese stocks, with billionaire investor David Tepper saying in an interview that he's going all-in on China.
An expert from the GROW investment group, Hao Hong, told China Central Television Network (CGTN) that he believes for both the Hong Kong and Chinese markets, the bullish sentiment will rage on, and it's a celebration of the country's 75th National Day.
Gary NG from Natixis highlights the positive outlook for both A and H shares, noting that recent stimulus and regulatory relaxations have improved market sentiment. He noted that the general direction of Hong Kong's equities is more optimistic than before. However, he also cautioned that sustainable growth will depend on genuine improvements in the macro economy and corporate profits.
Andy Mok, a senior research fellow at the Center for China and Globalization, elaborated on the comprehensive nature of the recent policy initiatives.
"We shouldn't just look at the monetary policy announcement. If we look at this - what some are calling a barrage of policy announcements or a blitzkrieg on the demand side, we talked a little bit about the monetary side, but I think from there we can see the lowering of mortgage rates, of course, has an impact. It provides more money in people's pockets that they potentially could spend. More importantly, on the demand side, the announcement from the Politburo that first of all the decline in the real estate market has to be addressed, and I think that's incredibly important. I think no one disagrees that this would be one of the biggest things that could restore consumer confidence. Fiscal policies as well, some direct cash transfers have been announced. The specific details I don't think have been made clear yet, but these are very directly targeted towards consumer demand. And I believe the phrase that was used was that the masses of the government are responding to the concerns of the masses," he said.
Mok further emphasized the valuation of the Chinese market, describing it as one of the most affordable globally, with a price-to-earnings ratio below ten.
"I think there's been a lot of pessimism in the last few years, and I think that of course it is overdone. So we're seeing some bounce back from that. These policy measures we talked about just now, and the global macro environment as well — the half-point cut by the Fed we are seeing [are contributing to it]. We're starting to see and we'll continue to see a rotation out of more expensive markets like the U.S. into emerging markets, and China in particular. And I think we are seeing these animal spirits and sentiments starting to turn," he said.
Chinese stocks rally as experts highlight economic optimism
Foreign diplomats and scholars are looking closely at this year's "two sessions", saying China's 15th Five-Year Plan (2026-2030) will not only chart the nation's economic and technological priorities but also reshape global value chains.
The fourth session of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the nation's top political advisory body, opened on Wednesday, followed by the annual session of the National People's Congress (NPC) on Thursday. Together known as the "two sessions," these meetings offer a comprehensive view into China's development priorities.
Global observers emphasized that the 15th Five-Year Plan, a blueprint guiding the nation's economic, social, and technological priorities over the next five years, marks a decisive shift toward high‑quality growth anchored in advanced technologies, with ripple effects across the world.
"The two sessions will discuss China's five-year plan, which is heavily oriented toward China's major technological development. I believe this is important because it represents the new blueprint for China's economy, which is now oriented toward the renowned high-quality development, and this will undoubtedly impact the entire world. I think it is worth studying. This is very important for Latin America. It will help us integrate more intelligently into global value chains and into all aspects of the major development that China is promoting in iconic industrial sectors, such as artificial intelligence, quantum computing, and space development, where Latin America also has much to contribute beyond just commercial growth," said Gustavo Sabino Vaca Narvaja, former Argentine Ambassador to China.
"The two sessions are a major political milestone in China, and this year's gathering carries even greater significance as this year marks the start of the 15th Five-Year Plan. This plan represents not only a blueprint for China, but also a guide for other countries. Instruments like the five-year plan effectively provide greater certainty and predictability for the rest of the world," said Chilean scholar of international relations Ignacio Araya Heredia.
"This is a particularly important date, especially due to the fact that the next Five-Year Plan shall be positioned and we're going to see what its main elements shall be. Serbia, which has a very high degree of steel friendship with the People's Republic of China, can expect further assistance in identifying the most prominent areas of Serbian economy and being helped by its great partner, such as it has been done in the previous period, from one part with establishing the main infrastructure projects, but also reshaping the industrial sector of Serbia, not just Serbia, but the region as a whole," said Veljko Mijuskovic, assistant professor of the Faculty of Economics of the University of Belgrade.
Beyond the policy framework, experts also pointed to China's achievements in green energy and technological innovation as models worth emulating.
Tomasz Bielinski, adjunct professor at the University of Gdansk's Faculty of Economics, said the robotics displays at the 2026 China Media Group (CMG) Spring Festival Gala reflected China's broader push in technological innovation.
"I was really impressed about the robotics. I'm very impressed with Chinese development in the technological field, we can still make great deals with Chinese businessmen and we can cooperate together to use this technology for both the good of China and the European Union. I'm aware of the innovation especially in autonomous drive on the on the Chinese side," he said.
"We hope for more of China's economic cooperation, especially in trade and also in investment. Also, and the other focus, if I talk about the focus of the development, don't forget about the green energy. We know that China is great in the electric vehicle field. So because China's electric vehicles in Indonesia nowadays, since couple of years ago, are very, very popular," said Al Busyra Basnur, president of the Indonesia-China Friendship Association.
Observers see China's new five-year plan driving high-quality development, global tech shifts
