A-share market hits highest daily turnover this year, nears 3,900

Rally driven largely by the technology sector: expert

Source: Global Times

Published: Aug 25, 2025 05:21 PM

stock market Photo:VCG

China's A-share market surged on Monday, with more than 3,300 stocks gaining. The Shanghai Composite Index closed 1.51 percent higher at 3,883.56 points, approaching the 3,900-mark. The Shenzhen Component Index rose 2.26 percent, while the ChiNext Index jumped 3 percent.

Turnover on the Shanghai and Shenzhen markets on Monday totaled 3.14 trillion yuan ($438.07 billion), the highest this year and the second-highest in history, only behind the record 3.4549 trillion yuan set on October 8 last year, according to CCTV News.

The rally on Monday followed several days of steady gains across Chinese stock markets, showing better investor confidence and active trading. 

The rally has been driven largely by the technology sector, and it reflects China's growing competitiveness in the sector, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Monday. 

Artificial intelligence chip provider Cambricon's stocks surged to 1,391 yuan at one point on Monday, the highest since its listing and approaching the price of Kweichow Moutai. Another chipmaker, Hygon Information Technology Co, rose to a record intraday high of 217.66 yuan and closed at 210.1 yuan, up 12.92 percent, with its total market capitalization exceeding 480 billion yuan, according to the Securities Times.

Computing hardware stocks also saw significant gains. Shanghai Stock Exchange-listed Shenzhen Kinwong Electronic Co, Shenzhen Stock Exchange-listed ShenZhen QiangRui Precision Technology Co and Robotechnik Intelligent Technology Co hit their daily limit-up levels at the close on Monday. 

Stocks in the rare-earth sector similarly surged. Beijing Stock Exchange-listed Beijing Zhtd Environmental Protection Technology Co and Shenzhen-listed Jl Mag Rare-Earth Co hit their daily limit-up levels. 

Despite the US' attempt to contain China technological development, especially in semiconductors, China has established a competitive edge in relevant technologies, said Dong. 

"Although high-end process chips and lithography machines still fall behind, mid-range products are maturing, drawing domestic capital to the sector and fueling the current stock market rally," he noted.

The gain in stocks came as many listed companies reported robust earnings. A total of 1,688 A-share listed companies released their 2025 interim reports as of Sunday, with 978 posting year-on-year net profit growth, according to statistics from Wind, a Chinese provider of financial information, published on Monday.

Among them, 288 companies announced interim dividend plans alongside their reports, with a total proposed dividend payout of 164.698 billion yuan. The average interim cash dividend payout ratio for these companies is about 80.87 percent, a significant increase from 36.14 percent seen in 2024, Wind data showed.

The strong stock market performance also comes as China has stepped up policy support for the economy. China's central bank, top securities regulator and financial regulator on September 24, 2024, announced a raft of monetary stimulus, property market support and capital market strengthening measures, including a cut in the reserve requirement ratio and lower mortgage rates on existing home loans. 

Hu Qimu, deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, said that the strong policy measures have helped stabilize market expectations as policies have shown positive effect. "A steadily growing market trend can continuously attract long-term capital, further stabilizing the capital market," said Hu, noting that global investors are also increasingly upbeat about China's capital market.