China's stock markets have reached notable milestones with the Shanghai Composite Index hitting its highest level since August 2015, trading 1.2% higher at 3,740 points during midday on August 18, 2025. The broader A-share market capitalization surpassed 100 trillion yuan ($14 trillion), supported by strong trading volumes, improved investor sentiment, and sustained capital inflows. Turnover on the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) exceeded 2 trillion yuan, although this represented a decrease of approximately 130 billion yuan compared to the previous day. Despite a slight decline at the close on August 19, with the Shanghai Composite Index down 0.02%, Shenzhen Component Index down 0.12%, and ChiNext Index down 0.17%, the market rally is viewed by analysts as potentially durable due to the absence of retail-driven euphoria and relatively stable volatility in the CSI 300 Index. Additionally, Chinese rare earth stocks contributed to the rally, with the CSI Index rising over 3%. The Hang Seng Index and Hang Seng Tech Index in Hong Kong also showed modest gains at market open, up 0.26% and 0.24% respectively.