Shanghai, Feb 28, 2026, 13:57 GMT+8 — The session is done; markets are shut.
- Friday saw the Shanghai Composite Index edge up 0.39% to close at 4,162.88.
- After the Lunar New Year break, investors put money back to work, wagering Beijing is set to prioritize tech and homegrown demand support as March begins.
Shanghai’s benchmark index wrapped up the shortened holiday week with a 0.39% climb on Friday, settling at 4,162.88. Since trading kicked back in on Feb. 24 after the Lunar New Year break, the Shanghai Composite has added roughly 1.1%.
The focus now shifts to what’s ahead, not what’s already happened. Traders are weighing if this rebound is just a post-holiday lag adjustment or if policy changes are starting to take hold.
Morgan Stanley flagged stronger risk appetite in China’s “A-shares” following the recent break, with heavier trading giving stocks a lift in Shanghai and Shenzhen. According to the bank, turnover for A-shares surged 24% to 2.43 trillion yuan from Feb. 12 to Feb. 25. Investing.com
Friday’s action showed a split market. The CSI300 blue-chip index edged down 0.3%. Semiconductor material and equipment names took a 2.4% hit, tracking Nvidia’s overnight slide. Coal stocks, on the other hand, surged; the sub-index jumped 3.5%, according to Reuters.
Materials led gains earlier this week, with rare earth and metals stocks picking up demand as talk around “critical minerals” gained traction amid geopolitical tension. The CSI Rare Earth Index surged 6.1% Wednesday. UBS analysts noted some investors rotated toward less trafficked spaces—coal, lithium, insurance among them. Business Recorder
Property names took most of the heat during the session’s first real stumble. The CSI 300 Real Estate Index dropped 3.3% on Thursday, reacting to Shanghai’s move to relax some homebuying rules for non-residents. Huatai Futures flagged that the “spring rally” is likely in its “second half.” Business Recorder
Currency swings spilled over into stocks once again. The central bank announced plans to scrap a 20% reserve rule on FX forward contracts—used to fix future exchange rates—effective March 2, aiming to put the brakes on the yuan’s climb. “It means the PBOC is intervening as the yuan’s appreciation is too fast,” said Yuan Tao, analyst at Orient Futures. Investing.com
Trade policy remains a headwind for exporters and cyclicals, with risks that can materialize fast. The U.S. International Trade Commission is set to examine what would happen if China’s Permanent Normal Trade Relations status were revoked across a six-year stretch. A report is on the schedule for release by Aug. 21.
Still, markets remain hypersensitive—one phrase in a policy statement can flip sentiment. Should the early-March meetings amount to broad slogans without substance, or property-sector jitters re-emerge, the week’s advances could vanish in a hurry.
Coming up, Beijing’s “Two Sessions” get underway with the CPPCC advisory gathering on March 4, followed by the National People’s Congress the next day. Investors are set to scan Monday’s reopen for specifics on tech, innovation, and domestic spending. China Daily
