China’s A-shares are showing signs of a steady bull market, with the Shanghai Composite Index repeatedly hitting new highs in August. The benchmark climbed above 3,800 points on August 22 for the first time in a decade, while daily turnover topped 3 trillion yuan on August 25 — only the second time in history.
Historically, A-shares have never experienced a “slow bull,” but this round of gains looks different from previous bull markets. The Shanghai Composite is up 14.7% so far this year. That compares with a 27% jump within just six trading days during last year’s sharp rebound from below 2,800 points, and a more than 150% surge in less than a year during the 2014–2015 bull run.
Market performance has diverged sharply, with technology stocks emerging as the main driver. Since April 8, the ChiNext Index, STAR 50, and Beijing Stock Exchange 50 have gained 50.69%, 37.70%, and 48.50% respectively, with the STAR 50 rising more than 30% in August alone. On August 28, AI chip leader Cambricon hit a record high, overtaking Kweichow Moutai to become the most valuable newly listed stock on the A-share market.
