"Chinese stocks look set for their strongest showing since 2017, after a technology-driven bull run broadened out to include companies from gold miners to drug makers.

The MSCI China Index has risen about 28% this year, poised for a second consecutive annual gain. It is also en route to overtake the S&P 500 Index by the widest margin since 2017.

The inclusive rally captured the popular global themes of artificial intelligence and hot commodities, as well as local catalysts like innovation and gaming. Meanwhile, notable laggards such as utilities and property developers offer a stark reminder of China’s entrenched housing woes and deflationary pressures.

“While the AI theme may keep a segment of the equity market rallying in 2026, one of the more likely catalysts for a broad-based rally looks to be another stimulus announcement,” said Oliver Blackbourn, a portfolio manager at Janus Henderson. “A clear plan for resolving the housing issue or driving increased consumer spending would likely have the most positive impact.”"

https://www.bloomberg.com/news/articles/2025-12-29/chinese-stocks-on-track-for-best-year-since-2017-as-rally-widens

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