ChiNext Index Hits Record High Ahead of Trump’s Visit

China’s technology-heavy ChiNext index closed at an all-time high on Wednesday, crossing the 4,000-point mark as investor optimism rose ahead of US President Donald Trump’s visit to Beijing.

The Nasdaq-style ChiNext board in Shenzhen, which tracks technology firms, ended trading at 4,038.33 points, marking its highest-ever closing level. Other Chinese stock benchmarks also posted strong gains, with the Shanghai Composite Index reaching its highest level since 2015.

Chinese equities have been on an upward trend for months, driven by what analysts describe as strong fundamentals across multiple sectors. Expectations surrounding Trump’s upcoming visit have further boosted the market, as some investors anticipate progress toward easing US-China trade tensions.

Trump is scheduled to arrive in China on Wednesday. He will be accompanied by top US tech executives, including Nvidia CEO Jensen Huang, Apple CEO Tim Cook, and Tesla and SpaceX CEO Elon Musk.

In a note issued Wednesday, Morgan Stanley said China’s stock market could see “moderate upside” by the second quarter of 2027, supported by improving earnings and the country’s growing dominance in global upstream supply chains.

The firm added that any extension of the one-year ‘trade truce’ agreed in November during this week’s US-China summit could also trigger further moderate gains in the index.

UBS China equity strategist Meng Lei echoed the sentiment, saying ChiNext’s rally has largely been driven by rapid earnings growth among listed companies.

The index includes several major Chinese tech firms, such as battery maker Contemporary Amperex Technology Co. Ltd. (CATL) and Apple supplier Lens Technology.

At a Monday briefing, Meng said ChiNext-listed companies’ earnings rose 21.6% in 2025 and further accelerated to 22.7% in the first quarter of 2026.

He added that this strong earnings momentum has been clearly reflected in market performance.

On Wednesday, CATL shares rose 0.7%, while Lens Technology gained 7.3%. Among ChiNext components, chipmaker Maxscend Microelectronics recorded the biggest gain, surging 15.5%.

Another tech-focused benchmark, the SSE Star 50 index—which tracks the 50 largest companies on Shanghai’s Nasdaq-style STAR Market—also closed at a record high on Wednesday at 1,770.15 points.

Launched in 2019, the STAR Market includes leading Chinese semiconductor firms such as Semiconductor Manufacturing International Corporation (SMIC) and graphics processor designer Cambricon Technologies.

Hong Kong’s Hang Seng Tech Index, which represents 30 major listed technology firms including Alibaba and Tencent Holdings, rose 0.5% on Wednesday.

In a report, HSBC said ChiNext and the Star 50 have been among the world’s top performers since April, shrugging off concerns over Middle East tensions. The bank expects growth-oriented stocks to continue outperforming, supported by favorable valuations, improving earnings momentum, and ample market liquidity.

HSBC also noted that Trump’s visit to China this week could help stabilize bilateral relations and boost risk appetite in markets.

China announced major reforms to ChiNext in April, allowing technology companies to list before becoming profitable.

Under the new rules, firms in emerging industries can apply for IPOs if they have a market valuation of at least 3 billion yuan (US$439 million) and revenue exceeding 200 million yuan.

The move is part of a broader 16-year reform of the board aimed at reducing volatility and attracting a wider investor base.

The China Securities Regulatory Commission has also said it will expand exchange-traded funds and options linked to ChiNext, and introduce related index futures in the future.

According to HSBC, these changes could make the ChiNext board “more attractive for innovative companies than the STAR Market.” The bank expects increased institutional participation to boost long-term capital inflows and foreign investment, supporting further revaluation of high-tech shares on ChiNext.
Source: South China Morning Post (adaptive)