Shenzhen Component Index up nearly 2%, surpasses 11,864.12 intraday, breaking last year’s “9/24” peak

Shenzhen Component Index up nearly 2%, surpasses 11,864.12 intraday, breaking last year’s “9/24” peak

The Shenzhen Component Index (SCI) has seen a notable increase, rising by nearly 2% and surpassing the intraday level of 11,864.12 on July 2, 2025. This marks a significant milestone as it breaks last year’s peak, which was set on September 24, 2024. The index's performance is a reflection of the broader optimism in the Chinese tech sector, driven by robust economic indicators and growing investor confidence.

The SCI's recent surge can be attributed to several factors. Firstly, the index's performance is bolstered by the strong fundamentals of its constituent companies, many of which operate in high-growth sectors such as technology, healthcare, and renewable energy. Secondly, the Chinese government's supportive policies towards the tech industry have created a favorable environment for growth and innovation. Additionally, the global demand for Chinese tech products, especially in the wake of the ongoing economic recovery, has been a significant driver of the index's performance.

However, despite the positive trends, investors should remain cautious. The tech sector is known for its volatility, and the recent surge in the SCI could be a sign of a temporary bullish trend. Furthermore, the global economic outlook remains uncertain, with geopolitical tensions and trade disputes potentially impacting the performance of Chinese tech companies. Therefore, while the current rally in the SCI is encouraging, investors should conduct thorough due diligence and maintain a balanced portfolio.

In conclusion, the Shenzhen Component Index's recent performance is a testament to the resilience and potential of the Chinese tech sector. While the index's break of last year's peak is a positive indicator, investors should approach the market with caution and stay informed about the latest developments and risks.

References:
[1] https://www.timothysykes.com/news/visionmarinetechnologiesinc-vmar-news-2025_08_17/
[2] https://www.ainvest.com/news/solana-news-today-cardano-nears-1-rtx-approaches-20m-presale-target-2508/