China’s Stock Market Surge: When Did China Open Its Markets, Why Are Chinese Stocks Rising Now, and How a Malaysian Trades Them (2026)
Contents
Chinese stocks spent 2021 to 2023 as the market everyone had given up on. Then, in one week of September 2024, the main onshore index rose about a quarter. Hong Kong had its best year in more than a decade in 2025. By January 2026 the Shanghai Composite was at its highest since 2015. Malaysian students in our China Stock Mastery classes keep asking the same two questions: when did China actually open this market, and why is it moving now?
This guide answers both. It walks through the forty-year timeline from a closed economy to a market Malaysians can trade from a phone, explains the three things that turned the market in 2024 and kept it going, and ends with the practical rules of trading A-shares and Hong Kong from Kuala Lumpur, which differ from anything else you will trade.
📌 Key points
- China’s modern stock market dates from December 1990, when the Shanghai Stock Exchange reopened and Shenzhen began trading. Foreigners got their first direct access in 1992, their first meaningful access in 2002 to 2003, and open access through Hong Kong’s Stock Connect from 2014.
- Global index inclusion came in June 2018, when MSCI added A-shares to its emerging-markets index, and that is the moment the world’s pension money was obliged to own them.
- The current rally began on 24 September 2024 with a coordinated stimulus package, was re-ignited in early 2025 by China’s AI breakthrough, and carried into 2026 on a stronger yuan and the rotation of household savings from property and deposits into shares.
- Hong Kong rose about 28% in 2025 and the CSI 300 about 18%; by January 2026 the CSI 300 was at a four-year high. Analysts expect 2026 to be a year of consolidation rather than another surge.
- A-shares trade in Malaysian daytime, with a 10% daily limit, 100-share lots and a next-day selling rule. Hong Kong has none of those. Both are reachable from Malaysia through licensed brokers with Connect access.
When China opened its markets: the timeline
“China opened its market” means three different things depending on who is asking: the economy, the stock exchanges, and access for foreigners. All three matter to the price you see today.
| Year | What opened | Why it matters now |
|---|---|---|
| 1978 | Deng Xiaoping’s “reform and opening” begins; Shenzhen becomes a special economic zone in 1980 | The economy starts the climb that makes today’s companies possible |
| December 1990 | Shanghai Stock Exchange reopens (it had closed in 1949); Shenzhen Stock Exchange begins trading, formally established in 1991 | The modern A-share market is born. “A-shares” are shares in mainland companies, priced in yuan, listed in Shanghai or Shenzhen |
| 1992 | B-shares launch: a small class of shares priced in foreign currency that foreigners may buy | The first crack in the wall, but a tiny market that never mattered |
| 2001 | China joins the World Trade Organization | Exports boom; the “world’s factory” decade begins |
| 2002 to 2003 | Qualified Foreign Institutional Investor (QFII) scheme: licensed foreign funds may buy A-shares within quotas | Large foreign institutions get in; retail foreigners still cannot |
| 17 November 2014 | Shanghai-Hong Kong Stock Connect opens; Shenzhen-Hong Kong Connect follows on 5 December 2016 | Anyone with a Hong Kong brokerage account can buy mainland shares. This is the door Malaysians use |
| 2017 | Bond Connect opens | Foreign money reaches China’s bond market the same way |
| June 2018 | MSCI includes A-shares in its Emerging Markets index at a 5% inclusion factor, raised to 20% in 2019 | Index funds worldwide are now required to hold A-shares; foreign ownership becomes structural |
| 2019 | STAR Market opens in Shanghai for technology listings; QFII quotas abolished | China gets its own NASDAQ-style board; foreign quotas disappear |
| 2020 to 2023 | QFII and RQFII schemes merged; ETF Connect (2022) and Swap Connect (2023) | The plumbing is complete |
So the honest answer to “since when” is: the exchanges have been open for 36 years, foreigners have had real access for about 12, and global index funds have been forced holders for 8. The market that is rallying today is not new. What is new is who owns it and why.
Why the market went nowhere from 2021 to 2023
To understand the surge you need the slump before it. From the February 2021 peak the CSI 300 fell for three straight years, something no other major index did. Four things sat on it at once.
- Property. Housing is the largest store of Chinese household wealth, and the developer crisis that began with Evergrande in 2021 froze it. Falling home prices made households save, not invest.
- Regulation. The 2021 crackdowns on technology platforms, private tutoring and gaming told investors that profits could be legislated away overnight. Foreign money left.
- Zero-COVID. Lockdowns through 2022 stalled the economy a year after everyone else had reopened.
- Deflation. By 2023 consumer prices were flat or falling, which for a stock market is worse than inflation: companies cannot raise prices, so profits stagnate.
By mid-2024 Chinese shares were among the cheapest in the world on any measure, and almost nobody wanted them. That is the setup that produces a surge, because when the news changes there are no sellers left.
What turned it: three triggers
1. The 24 September 2024 package. The People’s Bank of China cut rates and bank reserve requirements, cut mortgage rates, and, unusually, created two facilities aimed directly at the stock market: a swap line so that funds and insurers could borrow to buy shares, and a lending programme so that companies could borrow to buy back their own. The message was that the state wanted the market up. The CSI 300 rose about 25% in the five trading days that followed, the fastest rally in its history, and the Hang Seng followed.
2. The AI moment, January 2025. When the Chinese lab DeepSeek released a model that matched the leading American systems at a fraction of the cost, the global assumption that China was years behind in AI collapsed in a weekend. Chinese technology shares, most of them listed in Hong Kong, re-rated through 2025. The Hang Seng ended 2025 up about 28%, its best year since the 2000s, and the CSI 300 about 18%.
3. Money came home, and savings moved. In early 2026 the yuan strengthened through 7 to the dollar for the first time in two and a half years, which historically coincides with Chinese stock gains because it signals capital staying in, not leaving. At the same time, Chinese households held around 163 trillion yuan in bank deposits earning ever-lower interest, with property no longer the obvious alternative. A small fraction of that moving into shares is a very large flow. Add Beijing’s repeated promises to “deepen reforms” and support capital markets, and the CSI 300 reached a four-year high in the first week of January 2026, with the Shanghai Composite at its highest since July 2015.
Where the rally stands in 2026
The easy part of the move is over. After a strong January, mainland indices spent the middle of 2026 consolidating; by mid-year the CSI 300 was up only around 5% for the year. Major banks’ year-end targets implied modest further gains, and the common forecast was a “year of stabilisation” after 2025’s returns. Technical measures flashed overbought in January, which is the normal aftermath of a surge, not a signal that it is over. Where the indices stand this week is on any quote page; what the timeline above tells you is that the drivers, state support, an AI re-rating and household flows, are structural rather than one-off, and that the risks, property, policy and politics, have not gone away.
How a Malaysian trades China: the rules that are different
Chinese markets have rules you will not meet in the US or on Bursa. Learn them before the first order.
| A-shares (Shanghai, Shenzhen) | Hong Kong (H-shares, HK-listed tech) | |
|---|---|---|
| Currency | Yuan (CNY) | Hong Kong dollar (HKD) |
| Hours, Malaysian time (no daylight saving) | 9:30 am to 11:30 am, 1:00 pm to 3:00 pm | 9:30 am to 12:00 pm, 1:00 pm to 4:00 pm |
| Daily price limit | 10% up or down for most shares; 20% on the STAR and ChiNext boards | None |
| Lot size | 100 shares, always | Varies by stock, set by the company |
| Selling rule | Shares bought today cannot be sold until the next trading day | Can be sold the same day |
| Settlement | Cash the same day for Connect trades, shares next day | Two business days |
| How a Malaysian reaches it | Through a broker with Stock Connect access; subject to daily Connect quotas and closed on both Hong Kong and mainland holidays | Directly through any broker offering Hong Kong trading |
| Regulator | China Securities Regulatory Commission | Hong Kong Securities and Futures Commission |
Three consequences follow. First, the daytime hours suit Malaysians who cannot trade US evenings: a student or shift worker can trade China before lunch. Second, the 10% limit changes how a crash looks: instead of a 15% drop in a day, you get a stock “limit down” at minus 10% with no buyers, and the next day’s open is where the real move happens. Third, the next-day selling rule means a day-trading approach from the US indices does not transfer; you are, at minimum, an overnight trader in A-shares, and position sizing has to allow for that.
From Malaysia, the practical route is a Securities Commission-licensed broker that offers Hong Kong trading and Stock Connect. Check the broker on the SC’s lists before funding, the same way you would for any market, and expect to hold Hong Kong dollars or yuan in the account.
What to watch, in order
- Policy. Beijing’s statements on growth targets, property support and capital markets move the index more than any earnings report. The annual March policy meetings and the monthly central bank operations are the calendar.
- The yuan. A strengthening yuan has coincided with rallies; a sharp weakening has coincided with outflows and falls.
- Northbound flows. The daily figure for money moving from Hong Kong into A-shares through Connect is published every day and is the cleanest read on foreign sentiment.
- Property data. Monthly home prices and developer news. The market will not fully trust the rally until housing stops falling.
- US-China relations. Tariffs, technology export controls and delisting threats hit Hong Kong-listed technology first.
China Stock Mastery takes these five and turns them into a screening and timing process; this article is the Understand stage, the map before the method.
FAQ
When did China open its stock market?
The Shanghai Stock Exchange reopened in December 1990 and Shenzhen began trading the same month, formally opening in 1991. Foreigners gained limited access in 1992 (B-shares), institutional access from 2002 to 2003 (QFII) and open access through Stock Connect from November 2014.
Why are Chinese stocks going up?
Three reasons in sequence: the September 2024 stimulus package aimed directly at the stock market, the January 2025 AI breakthrough that re-rated Chinese technology, and in 2026 a stronger yuan and the rotation of household savings from deposits and property into shares, with continued policy support.
Can Malaysians buy China stocks?
Yes. Hong Kong-listed shares are available through any licensed broker with Hong Kong access; mainland A-shares through brokers offering Stock Connect. Check the Securities Commission’s lists before opening an account.
What is the difference between A-shares and H-shares?
A-shares are mainland companies listed in Shanghai or Shenzhen and priced in yuan. H-shares are mainland companies listed in Hong Kong and priced in Hong Kong dollars. Many large companies have both, and the same company often trades at a different price in each market.
What time does the China stock market open in Malaysia?
Mainland markets open at 9:30 am and close at 3:00 pm Malaysian time with a lunch break from 11:30 am to 1:00 pm. Hong Kong opens at 9:30 am and closes at 4:00 pm with a break from noon to 1:00 pm. Neither observes daylight saving, so the hours never change.
Summary
China’s exchanges reopened in December 1990, foreigners got real access through Stock Connect in 2014, and global index funds became required holders from 2018. The market then went nowhere for three years under property, regulation, lockdowns and deflation, which left it cheap and unloved. The surge began with the 24 September 2024 stimulus, was re-ignited by the AI re-rating of early 2025 that gave Hong Kong its best year in decades, and carried into a four-year high in January 2026 on a stronger yuan and household money moving into shares. 2026 has been a year of consolidation. For a Malaysian the market is reachable in daytime hours through licensed brokers, with rules, the 10% limit, 100-share lots and next-day selling, that change how risk has to be sized.
Disclaimer
This article is education, not financial advice. Market history and data are drawn from published sources as at the time of writing; index levels change daily. Trading foreign shares carries currency, policy and liquidity risk in addition to market risk, and most retail traders lose money. Traderpreneur Xcellence Sdn Bhd is a trading education provider and does not provide investment advice, trading signals or account management.
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- America’s Inflation Is “Too High” Because of Oil. So Why Is Petrol Still RM1.99 in Malaysia? (2026)
- “82% Chance of a Rate Hike”: Who Decides That Number, and How to Read It Before You Trade (2026)
- The New Fed Chair Says He Won’t Tell Markets What Comes Next. What That Means for Your Gold and Forex Trades (2026)
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