The Shanghai Composite index rallied 2.5% to 3,240.94 and the blue-chip CSI300 index added 2.6%, both marking their best single-day gains since Nov 7.

The Hong Kong benchmark Hang Seng Index climbed 1.8% to recover from a four-month low, and the tech index jumped over 3%.

Sentiment was buoyant after Beijing pledged more measures to bolster fragile markets and economic growth, as the worst start to a New Year in a decade left retail investors sour on stocks and anxious about policy and geopolitical uncertainties.

Stock market stability will be on top of the agenda in 2025, and the China Securities Regulatory Commission (CSRC) will make all efforts to build up an upward momentum, it said yesterday.

The People’s Bank of China (PBOC) will further improve the relending and funding scheme introduced last year to support the capital market, it said.

The PBOC will also prevent the risk of exchange rate overshooting, and maintain the basic stability of the RMB exchange rate at a reasonable level, it added.

“The market has cooled down quite a bit since the beginning of 2025, and with external disturbances starting to kick in, more policy support could come through to help stage a rebound,” analysts at CITIC Securities said.

Chip stocks led the gains onshore, with the CSI Semiconductor Industry Index strengthening 4.1%.

China’s biggest chipmaker Semiconductor Manufacturing International Corp surged 4% and peer Hua Hong Semiconductor jumped 3.7%.

Domestic investors continued betting on the local chip players, after the US said yesterday it would further restrict artificial intelligence (AI) chip and technology exports while finding more ways to block China’s access.