China's stock market hits highest level in three and half years

China's stock market hit a record high Thursday in more than three and a half years, with the Shanghai Composite Index briefly breaking through the 3,700-point mark in intraday trading for the first time since December 2021, thanks to strong gains in insurance and computer-hardware stocks.

All three major A-share indices staged a sharp intraday rally before surrendering their gains.

Insurance stocks rose throughout the session, while digital-currency plays, graphics processing unit (GPU) concepts, server makers and cross-border-payment themes also ranked among the top performers.

The combined turnover on the Shanghai and Shenzhen stock exchanges topped 2 trillion yuan (more than 278.8 billion U.S. dollars) for the second straight day, up more than 100 billion yuan (about 13.94 billion U.S. dollars) from Wednesday.

Insiders say multiple favorable factors will drive the strong momentum further.

"Sector-wise, insurance, brokerages and semiconductors led the gains today, with brokerages in particular showing powerful momentum. It highlights the persistence of the market's rally momentum. The market now rests on three solid pillars: support from fundamentals, ample liquidity and policy support. Looking ahead, multiple positives remain in play. Continued macro-economic recovery lays the foundation for further equity gains. Monetary policy is prudent yet flexible and fiscal measures are being stepped up. In addition, against the backdrop of a global economic rebound, international funds are increasing allocations to emerging markets," said Yang Chao, chief strategy analyst of China Galaxy Securities.

"A-shares are experiencing an all-round boom now. Why so? First of all, the gains were led by several different sectors - from AI to utilities and medicine - not just one. Second, the daily transaction volume has been above one trillion yuan (about 140 billion US dollars) for over a month. On Wednesday, it reached two trillion yuan. Third, the regulatory reform has continued, which is all about making the capital market more open and inclusive. As a result, investors' growth outlook has clearly improved," said Yang Ling, CEO of StarRock Investment Management.

China's stock market hits highest level in three and half years

The multilateral system is "under attack" amid global turmoil, President of the 80th UN General Assembly Annalena Baerbock warned in her remarks on Wednesday.

In her briefing on the priorities for the resumed 80th Session of the General Assembly, the UNGA president noted that the current multilateral system does not collapse all in a sudden, but "crumbles piece by piece" in divisions, compromises, and lack of political commitment.

The president called all the UN member states to defend the UN Charter and international law and promote cross-regional cooperation.

She also urged to push forward the work of the UNGA on certain critical issues with a strong majority, rather than an absolute consensus among all member states. Such act is not a failure of multilateralism, but "an affirmation of it," she said.

The foundational principles of the institution should not be eroded by appeasement, she said, calling the member states to show courage, leadership, and responsibility at the UN's "critical make-or-break moment."

"The UN needs you. Your support, your leadership, your principle, stand, your cross-regional cooperation, if we are to preserve and modernize this institution, if we are to make it, rather than break it," she said.

UNGA President warns global multilateral system "under attack"