China’s blue-chip CSI300 Index and the Shanghai Composite Index climbed 1.2% each by the lunch break. Hong Kong benchmark Hang Seng was up nearly 2%.

The Shanghai Composite Index touched its highest level since July 2015.

Non-ferrous metals and materials sectors led gains onshore and offshore, up 4% and 5% respectively, as copper prices hit a record high. Shares of Zijin Mining jumped 5.7%.

The CSI Insurance Index surged nearly 6% on expectations of stronger product sales, while securities climbed more than 3%.

“Clients see limited downside risk in January, with capital returning to popular themes and a tactical upside window before the holiday lull,” UBS analysts said in a note. “The rebound in Chinese equities since December has boosted confidence, with many investors planning to stay active until the later-than-usual Spring Festival in 2026.”

The Shanghai Composite Index was up more than 6% since mid-December.

UBS is sticking with last year’s top picks, remaining overweight on tech and internet stocks, expecting AI progress to continue driving growth. The bank also favors the solar supply chain as a way to benefit from the global expansion of energy storage and China’s domestic “anti‑involution” initiatives.

Tech majors traded in Hong Kong extended gains for a third consecutive session, up 2.2%, with Baidu shares up to the highest level since August 2023.