Chinese stock markets continue to rally as trading turnover hits record high: analyst

China's major stock indices continued a strong rally on Monday, pushing the trading turnover at the country's A-share market to a record high, said Timothy Pope, a market analyst for China Global Television Network (CGTN).

Chinese stocks closed higher on Monday, with the total trading turnover at the A-share market reaching over 3.6 trillion yuan (about 520 billion U.S. dollars).

The benchmark Shanghai Composite Index was up 1.09 percent to 4,165.29 points. The Shenzhen Component Index closed 1.75 percent higher at 14,366.91 points.

"The rally continued pretty strongly today. The Shanghai Composite Index added more than one percent in pretty brisk trade, hitting, as you said, another decade high. Since the start of the year, we've seen trading volumes go up and up as more and more investors pile in to get a slice of the action. Today's volume on the Shanghai Composite Index was not quite double what we saw on December 31, but it wasn't too far off either. The Shenzhen markets aren't being left out either. The Component Index there added 1.75 percent today. Investors were also digesting the strongest onshore Renminbi level since the middle of 2023 today. Seasonal demand for the yuan is always high ahead of the Chinese New Year, which is when hopefully all of us get our bonuses," said Pope.

AI remained the hottest sector in the trading session, said Pope.

"AI stocks continue to be hot property, but today we actually saw some pretty active other areas as well. Rare earths were up after a U.S. official said that Treasury Secretary Scott Bessent will be urging the G7 to shift away from their reliance on China for rare earths and critical minerals. But China really dominates that sector, and so this is going to be an uphill battle for them and it's not going to happen quickly, and the markets really seem to know that. China Northern Rare Earth Group added more than six percent today, and Tianqi Lithium rose 4.5 percent. And we saw satellite makers flying high as well after we saw the Chinese firms have plans to launch more than 200,000 communications satellites this year. And the bulk of these are just coming from two networks that are going to be launched and set up by a new research institute based out of China's Hebei Province. Investors found this huge jump in satellite deployment plans pretty exciting. We saw shares in companies like China Spacesat hitting their daily limits today," said Pope.

Chinese stock markets continue to rally as trading turnover hits record high: analyst

China's Minister of Commerce Wang Wentao outlined the key priorities of the 32nd Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting, which opened on Friday in Suzhou, East China's Jiangsu province.

In an interview with CGTN ahead of the two-day meeting, Wang said free trade, digital cooperation and green economy are high on the agenda of the meeting.

"The key areas include advancing regional economic integration and the Free Trade Area of the Asia-Pacific, supporting the World Trade Organization (WTO) in strengthening digital cooperation and developing green economy. At present, the international situation is marked by intertwined turbulence and chaos, with intensified geopolitical instability. The rise of unilateralism and protectionism poses serious challenges to the international economic and trade order, disrupting global and Asia-Pacific development. Against this backdrop, all parties have higher expectations for this trade ministers' meeting, hoping that it can build consensus and deliver outcomes," Wang said.

This year marks China's third time hosting the APEC meetings and the 35th anniversary of its membership.

By 2025, China had become the largest trading partner of 13 APEC economies. Trade between China and APEC economies reached 3.7 trillion U.S. dollars, accounting for 57.8 percent of China's total foreign trade.

China has signed 24 free trade agreements or economic and trade arrangements with 31 countries and regions, including 15 APEC economies. In recent years, China has also completed upgrades of free trade agreements with APEC economies such as Singapore and Peru.

The minister said that China has always been a firm supporter and an important contributor to APEC.

"We have actively shared our vast market and development opportunities with all parties. China's door to the world will only open wider and wider. Facing the common challenges, China will continue to fulfill its responsibilities as a major country, further deepen reform, expand high-standard opening-up, and continue to provide new opportunities for the Asia-Pacific region and the world with its new achievements in Chinese modernization," the minister said.

China's Commerce Minister outlines priorities for 32nd APEC trade ministers' meeting