Chinese equities and commodities rallied on Tuesday, with the benchmark CSI 300 Index climbing to its highest level of 2025. Average daily turnover on the mainland’s exchanges has approached ¥1.5 trillion this month, the strongest trading volume since last year’s DeepSeek rally. Market sentiment has been underpinned by state support. Shanghai Securities News reported that sovereign wealth unit Central Huijin injected as much as ¥200 billion ($27.9 billion) into ten broad-based exchange-traded funds during the second quarter. Separately, data show mainland investors’ net purchases of Hong Kong-listed shares are on track to set a yearly record, helping turn a key Hong Kong benchmark into one of the world’s best performers. Commodity markets echoed the risk appetite. Coking-coal futures on the Dalian Commodity Exchange surged 8 % to the exchange’s daily cap at about ¥1,049 a metric ton, extending their July gain to roughly 28 %. The CSI Coal Index advanced nearly 7 %, while iron-ore prices touched a five-month high. Shanghai contracts for silver, nickel, gold and copper rose between 0.8 % and 1.7 %. Traders attributed the coal spike to production-cut speculation after a document circulating on social media—purportedly from the National Energy Administration—ordered mines exceeding licensed capacity to suspend output for inspection. Reuters said authorities did not immediately confirm the directive, but the prospect of curtailed supply drove buying across the ferrous complex. Away from markets, the State Administration of Foreign Exchange said equity-based foreign direct investment rose 16 % year-on-year in the first five months, and reiterated that investors show no clear bias for renminbi appreciation or depreciation. The data add to signs of steady capital inflows even as authorities press ahead with capacity and efficiency reforms.
#China Launches Inspections to Halt Excessive Coal Production https://t.co/sJxu3KxQA3
#China's Ferrous #Commodity Rally Accelerates Amid "Anti-Involution" Policies, Coke and Coking Coal Poised for Further Gains https://t.co/8DmIPeogpS
“Mainland Chinese investors’ purchase of Hong Kong-listed stocks is approaching an annual record, driving a rally that has made a key benchmark in the city one of the world’s best performers.” https://t.co/JErp2aheMT