The Shanghai Composite rose 0.4% to around 3,980 on Monday, extending its winning streak to nine sessions, the longest since April, while the Shenzhen Component gained 0.3% to a two-month high of 13,640, after Beijing announced plans to expand fiscal spending to boost consumption and investment and a bullish global equities mood lifted sentiment in the final trading week of the year. China’s Ministry of Finance said the 2026 focus will be on strengthening the domestic market through higher consumer demand and targeted investment in public services, following a two-day national fiscal work conference. Investor confidence was further supported by a year-end “Santa Claus rally,” with global and US equities trading near record highs, a pattern that often sets the tone for equity performance in the new year. Notable performers included Cambricon Technologies (+7.2%), Foxconn Industrial (+3.7%), PetroChina (+2.2%), China Construction Bank (+1.2%), and China Shenhua Energy (+0.9%).
