The ChiNext Index, China’s equivalent to the Nasdaq, surged by over 3% on Thursday, reaching its highest level in 11 years. This milestone was driven by a broader market rally that saw nearly 4,300 individual stocks gain ground across the Shanghai and Shenzhen exchanges. Total market turnover remained robust at 2.34 trillion RMB, signaling sustained investor appetite for growth-oriented sectors despite a slight contraction in volume from the previous session.
In a symbolic changing of the guard, Contemporary Amperex Technology Co. Ltd. (CATL) reached a new record high, surpassing PetroChina to become the third-largest company by market capitalization in China’s A-share market. The battery titan’s ascent underscores the structural shift in the Chinese economy, where high-tech manufacturing and green energy are increasingly eclipsing the state-dominated fossil fuel giants of the past. Investors are flocking to the 'New Three' industries—electric vehicles, lithium batteries, and solar products—which now serve as the primary engines for the nation’s equity markets.
The rally was further bolstered by the burgeoning computing power and artificial intelligence infrastructure sectors. Stocks linked to AI server leasing and hardware, such as Hongjing Technology and Runjian Co., saw multiple constituents hit their daily price limits. This surge reflects a domestic pivot toward building out the 'digital backbone' necessary for China’s next phase of industrial automation, even as traditional sectors like pharmaceuticals faced a period of consolidation and correction.
While the broader indices showed strong gains, there was a noticeable divergence between large-cap weighted stocks and the rest of the market. Heavyweight technology and energy firms led the charge, suggesting that institutional capital is concentrating on industry leaders with proven scalability. This trend indicates that while retail optimism is high, the market’s core strength is being supported by a flight to quality among dominant players in the high-tech supply chain.