A-Shares Gain as Trade Tensions Rise

China’s stock market has shown resilience amid rising trade tensions between the US and China. Experts say investors should be confident in the country’s ability to safeguard its capital markets. The Shanghai Composite Index gained 0.45% on Monday, while the Shenzhen Component Index rose 1.27%. Tech-heavy ChiNext jumped 1.59%.

Experts point to self-reliant technology companies, consumer staples providers, and those generating stable dividends as attractive options in the A-share market. Despite ongoing US tariff policies, China has more policy options to mitigate economic impact.

Market turmoil persists globally, but China’s recovering fundamentals and swift responses to uncertainties have stabilized its markets. The country’s dual circulation development pattern and strategic focus will anchor stability, according to analysts.

Foreign investors are increasingly seeking refuge in Chinese stock markets, with qualified foreign institutional investors (QFII) holding record amounts of A shares as of March. Global capital is expected to return to the market in the mid-to-long term, driven by China’s rapidly developing artificial intelligence technology and stable investment value.

Source: https://global.chinadaily.com.cn/a/202504/22/WS6806dc92a3104d9fd3820b80.html