China’s ChiNext index rises 1.7% to 3,331.80

China’s ChiNext index rises 1.7% to 3,331.80

China’s ChiNext Index Rises 1.7% Amid Margin Trading Surge and Sector Strength

On February 23, 2026, China’s ChiNext Index, a key benchmark for high-growth technology companies, climbed 1.7% to 3,331.80, reflecting renewed investor confidence despite ongoing market volatility. The rise follows a record surge in margin trading and continued optimism in technology-driven sectors.

Margin trading balances on the Shanghai and Shenzhen stock markets reached CNY2.405 trillion (USD337.6 billion) in late September 2025, signaling heightened retail and institutional participation. Analysts attribute this trend to a growing base of individual investors, who have increasingly turned to leveraged strategies amid fluctuating market conditions. While the Shanghai Composite and Shenzhen Component indices have experienced intraday corrections, the ChiNext Index has outperformed, driven by demand for innovation-focused equities.

Sector-specific momentum has also bolstered the index. Electronic components, communication equipment, and photovoltaic industries have seen strong performance, with investors prioritizing domestic growth drivers over external risks such as U.S. tariff threats. This aligns with broader policy support for technological self-reliance and green energy initiatives.

Market analysts remain cautiously optimistic. Hua Xiaowei of the Shanghai Securities Research Institute noted that rapid rallies often trigger short-term corrections but emphasized the index’s long-term upward trajectory. Meanwhile, Zhang Di of China Galaxy Securities highlighted the relative stability of value stocks and improved interest rate spreads, though he warned that high-valuation technology stocks may require further policy easing to sustain gains.

The potential for new Boeing orders from Chinese airlines—reportedly up to 500 jets—has also contributed to risk-on sentiment, providing a tailwind for aerospace-linked equities and broader market optimism.

In conclusion, the ChiNext Index’s 1.7% gain underscores resilience in China’s growth-oriented sectors amid macroeconomic uncertainties. While volatility persists, the interplay of margin-driven liquidity and sector-specific fundamentals, along with geopolitical developments, continues to shape investor behavior.