China Stocks Soar: AI Boom, FII Influx Drive Historic Rally to Multi-Year Highs

• China's stock market sees a historic rally in early 2026, driven by the AI sector, positive manufacturing data, and government support.
• Benchmark CSI 300 index reached a four-year high, while the Shanghai Composite hit its strongest level since July 2015.
• Foreign investors (FIIs) made record-breaking purchases, contributing to a 2.5 trillion yuan onshore market turnover.
• AI-related companies like DeepSeek and Kuaishou Technology, along with strong AI/semiconductor listings, fueled investor confidence.
• President Xi Jinping's economic assurances and property market support also played a crucial role, despite technical overbought signals.

Why It Matters: China's stock market is experiencing a historic rally fueled by AI, manufacturing, and strong FII buying.