Shanghai Composite Index Performance – 20‑24 October 2025

  • Closing level on 23 Oct 2025: 3,950.31 points
  • 52‑week high (as of 23 Oct 2025): 3,950.31 points
  • 52‑week low (as of 6 Apr 2025): 3,040.69 points

During the week of 20–24 October 2025, the Shanghai Composite index recorded a 2.88 % increase, reaching a ten‑year high. This rise followed a period of market consolidation and contributed to the overall positive sentiment across A‑share markets.

Driving Factors

1. Strength in Technology and Growth Sectors

  • Technology growth themes dominated the weekly rally. Analysts noted that the sector had reversed previous corrections, registering the highest gains among all styles.
  • High‑growth technology stocks such as chip and consumer electronics companies posted significant intraday gains, with some individual names climbing over 60 % in a single day.
  • The 科创50 (Tech Innovation 50) index and other technology‑heavy indices recorded substantial gains, reinforcing the narrative that technology remains the core driver of the market.

2. Institutional Allocation Toward AI and Structured Themes

  • A cluster of public‑fund strategies highlighted AI technology, cyclical, and large‑cap blue‑chip sectors as priority themes for the near term.
  • The “Structure‑Based” strategy identified by the Hangzhou‑based fund manager emphasized the importance of liquidity‑driven structural trends, suggesting that the market was entering a phase where structural forces outweigh short‑term liquidity swings.
  • The Hangzhou‑based “AI‑Focused” ETFs led the rally, with seven ETFs linked to the AI index in the Shanghai Shenzhen ChiNext board posting gains of more than 13 %. These ETFs attracted a large portion of the net inflows in the ETF market for the week.

3. ETF Net Inflows and Defensive Allocation

  • ETF activity for the week surpassed ¥13 billion in net inflows.
  • Despite a general decline in the gold ETF (down more than 6 % during the week), it still attracted substantial buying pressure, accounting for approximately half of the top ten net‑inflow ETFs.
  • This defensive positioning indicates that investors were reallocating capital into safer assets while still seeking exposure to high‑growth themes.

4. Macro‑Policy Context

  • The 20th National Congress of the Communist Party and subsequent policy statements underscored a commitment to high‑tech development, advanced manufacturing, and consumption growth.
  • The Party’s announcement of a “future 10‑year high‑tech industry plan” is expected to provide long‑term valuation support for technology and related sectors.
  • Policy emphasis on “anti‑involution” in manufacturing and the construction of a modern industrial system is likely to stimulate demand for advanced manufacturing and related equities.

Market Outlook

  • Short‑term: The Shanghai Composite remains poised for further upside, provided that liquidity continues to support structural trends and that defensive inflows into gold ETFs persist.
  • Medium‑term: The sustained policy focus on technology, manufacturing, and consumption is expected to reinforce the growth narrative. Analysts anticipate that the “slow‑bull” cycle will continue, with technology and growth themes retaining primacy.
  • Long‑term: Structural momentum in technology and high‑tech manufacturing, coupled with supportive policy, may underpin a prolonged rally. Market participants are encouraged to monitor liquidity levels and turnover ratios, as a shift toward a contractionary phase could herald a period of reduced volatility.

Key Takeaways

  1. The Shanghai Composite index reached a ten‑year high of 3,950.31 points, driven by strong performance in technology and growth sectors.
  2. AI‑focused ETFs dominated the weekly rally, while defensive assets such as gold ETFs continued to attract capital despite price declines.
  3. Institutional strategies are increasingly favoring technology, cyclical, and large‑cap themes, reflecting confidence in the structural drivers of the market.
  4. Policy signals from the Party’s recent congress provide a favorable backdrop for continued investment in high‑tech and manufacturing sectors.

These developments collectively suggest that the Shanghai Composite index is positioned to maintain its upward trajectory, underpinned by structural growth factors and supportive macro‑policy dynamics.