China’s Stock Market Hits Highest Level Since 2015, Market Cap Breaks 100 Trillion Yuan

China’s equity market has reached a milestone not seen in ten years. On Monday, August 18, 2025, major Chinese stock indexes ended trading at their highest levels since 2015, supported by easing U.S.-China trade frictions and an influx of liquidity. The rally, which has lasted more than a month, also pushed the country’s total market capitalization past a historic threshold.

The Shanghai Composite Index climbed 0.9% to close at 3,728.03, marking its strongest finish since August 2015. Similarly, the CSI 300 Index gained 0.9%, hitting its highest point in the last ten months.

Since bottoming out in early April 2025, the Shanghai benchmark has risen about 22%. Market participants attribute this momentum to several key factors: an extension of the U.S.-China tariff truce, Beijing’s crackdown on unfair competition, and a significant rotation of funds from bonds to equities, which has flooded the market with liquidity.

For the first time, the combined market capitalization of more than 5,400 listed Chinese companies has surpassed 100 trillion yuan (approximately US$13.9 trillion). This milestone reflects both rising stock prices and the rapid pace of new listings over the past decade.

Winnie Wu, Chief China Equity Strategist at Bank of America, noted that improving geopolitical sentiment and clearer policy direction from Beijing have helped lower equity risk premiums and sparked a re-rating of valuations. However, she cautioned that the rally seems to be running ahead of economic fundamentals. “There are renewed hopes for stronger domestic retail inflows,” she wrote in a client note quoted by Reuters.

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China’s stock market has entered a new chapter, with indices reaching heights unseen in a decade and total capitalization breaking past 100 trillion yuan. While optimism continues to drive momentum, the coming months will reveal whether fundamentals can catch up with investor enthusiasm.

Satra Sinar Abadi Group