China's equity markets extended their rally on January 13, 2026, as optimism around corporate earnings fueled investor confidence. The CSI 300 and Shanghai Composite posted gains, lifted by strong performance in technology and consumer sectors.
- CSI 300 up 1.8%, Shanghai Composite up 1.4% on January 13, 2026
- 72% of CSI 300 companies reported earnings above consensus in Q4 2025
- Technology and consumer sectors led gains, with semiconductor and EV stocks outperforming
- Stock Connect net inflows reached $2.1 billion over three days
- Hang Seng Index rose 1.6%, MSCI China Index up 1.9%
- Cyclical sectors like industrials and materials saw gains of 2.1% and 1.7%
Chinese equities continued their upward trajectory on January 13, 2026, with the CSI 300 index advancing 1.8% and the Shanghai Composite rising 1.4% to close at 3,357.21. The momentum followed a wave of positive earnings reports from major listed firms, particularly in technology and consumer goods, where several companies exceeded expectations. The Hang Seng Index also gained 1.6%, while the MSCI China Index added 1.9% over the session. The rally was led by semiconductor and EV-related stocks, with several firms reporting double-digit revenue growth in the fourth quarter of 2025. Consumer discretionary names, including major e-commerce and luxury goods operators, also posted strong gains, reflecting improving domestic demand. Analysts noted that 72% of companies in the CSI 300 had reported earnings above consensus estimates, a significant uptick from the prior quarter. Market participants are increasingly viewing the current earnings season as a turning point for China’s economic recovery, especially after a period of subdued corporate performance. The renewed confidence has drawn in foreign inflows, with net buying in the Stock Connect program reaching $2.1 billion over the past three trading days. This shift in sentiment is also boosting investor appetite for cyclical assets, including industrials and materials, which saw gains of 2.1% and 1.7% respectively. The sustained rally has implications beyond domestic markets, influencing regional equities and commodity prices. Investors are reassessing risk exposure in Asia, with a growing number of funds increasing allocations to Chinese growth stocks. The move underscores the importance of earnings momentum as a driver of market performance in an environment of cautious monetary policy and geopolitical uncertainty.