Chinese equities extended their month-long rally on Monday, with the Shanghai Composite Index climbing 0.85% to 3,728.03 after touching 3,741 intraday—its strongest level since August 2015. The Shenzhen Component advanced 1.73%, the ChiNext gauge jumped 2.84% to its highest since February 2023 and the Beijing Stock Exchange 50 Index added more than 3% to a record. The broad gains lifted the combined market value of companies listed in Shanghai and Shenzhen above 100 trillion yuan (about US$13.9 trillion) for the first time, while turnover on the two bourses exceeded 2 trillion yuan, up 440 billion from the previous session. The equity surge coincided with a selloff in Chinese government debt. The 30-year sovereign yield rose 4.4 basis points to 2.038%, and the 10-year yield touched its highest level since April, underscoring an investor shift from bonds into stocks amid upbeat sentiment toward technology and policy-supported growth themes. A sector-heavy CSI index tracking artificial-intelligence plays gained nearly 3%, and Hong Kong’s Hang Seng Tech Index closed 0.65% higher despite the broader Hang Seng slipping 0.37%. Cross-border flows continued to build: mainland investors snapped up a record amount of Hong Kong shares on Friday, contributing to what Bloomberg calculations show as record capital outflows in July following Beijing’s latest liberalisation measures. Market participants said easing trade tensions and policy support for new-economy industries are helping sustain risk appetite even as richer equity valuations put pressure on longer-dated bonds.