Major Chinese stock indices closed higher on February 9. The Shanghai Composite Index rose over 1.4% to reclaim the 4100 level, while the Shenzhen Component Index gained more than 2% and the ChiNext Index advanced nearly 3%. Trading volume increased compared to the previous session.
A State Council executive meeting held on February 6 set the tone for investment work in the first year of the "16th Five-Year Plan," emphasizing a "government investment-driven" approach. The strategy aims to leverage central government funds to focus on new productive forces and future industries, stabilizing aggregate demand in the short term while optimizing the economic structure over the medium to long term. Fiscal and monetary policies align with this direction, with the central bank pledging support for key areas including domestic demand expansion, technological innovation, and small and micro enterprises. Five government departments, including the Ministry of Finance, announced plans to implement loan discount policies for small and micro enterprises.
Domestic equity markets show clear structural divergence. Amid a lack of major macroeconomic data releases before the Lunar New Year holiday and increased external uncertainties, investors are favoring sectors with relatively stable performance and lower sensitivity to economic cycles. Market drivers appear to be shifting from broad liquidity easing expectations toward seeking structural opportunities with earnings certainty and policy support.
On the news front, the State Council executive meeting on February 6 studied measures to promote effective investment, highlighting its importance for stabilizing economic growth and enhancing development momentum. The meeting called for innovative policy measures to efficiently utilize central budget investments, ultra-long-term special government bonds, local government special bonds, and new policy financial instruments. It emphasized advancing major projects and engineering programs in key areas such as infrastructure, urban renewal, public services, emerging industries, and future industries.
China's foreign exchange reserves stood at $3.3991 trillion at the end of January, up $41.2 billion from the end of December 2025, according to data released by the State Administration of Foreign Exchange on February 7. The People's Bank of China reported that the country's gold reserves reached 74.19 million ounces by the end of January, marking the 15th consecutive month of increases.
On February 6, the PBOC and seven other departments issued a notice on further preventing and dealing with risks related to virtual currencies, bringing the tokenization of real-world assets under regulatory oversight for the first time. The notice explicitly defines virtual currency-related business activities as illegal financial activities, subject to strict prohibition and取缔.
In market performance, the Shanghai Composite Index closed at 4123.09 points, up 1.41%; the Shenzhen Component Index ended at 14208.44 points, up 2.17%; the ChiNext Index finished at 3332.77 points, up 2.98%; and the STAR 100 Index closed at 1629.72 points, up 2.79%. All sectors gained, with Communications, Conglomerates, and Media leading the advances. A total of 4,430 stocks rose while 728 declined.
Trading volume reached 2.270366 trillion yuan, increasing from the previous session. The balance of margin lending and short selling stood at 2.663660 trillion yuan as of the last trading day, down from the prior day.
MACD golden cross signals have formed, with several stocks showing strong upward momentum.
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