The China onshore rally (stocks listed in mainland China) is gaining momentum. The Shanghai Composite Index recently climbed to a 10-year high.

In this PERSPECTIVES Viewpoint Equity – China: Riding on supportive policies and tech optimism, we examine the recent outperformance of China’s onshore equities (A-shares) relative to offshore equities (H-shares), explore the key drivers behind the A-share rally, and assess its sustainability.

Key takeaways:

  • China A-shares (onshore market) are catching up with H-shares (offshore market) that rallied following the DeepSeek event in early 2025.

  • The recent outperformance of A-shares reflects domestic sentiment and policy shifts. Fiscal expansion, adequate liquidity, anti-involution policies, improved global sentiment and rising domestic retail flows are the key drivers.

  • We suggest buying on dips to ride the China tech and policy wave, while also enhancing portfolio diversification with exposures to both China A and China H markets. 

'

The PERSPECTIVES Viewpoint is currently available and client-ready for the following regions: Germany, Americas, Europe, Middle East, Africa and Asia Pacific

PDF

Language:

Related special reports

podcast hero

PERSPECTIVES Weekly Podcast

September 21 – The bond-yield surge goes global

Fixed income has taken the spotlight in financial markets, as yields have jumped just about everywhere – and there are several reasons behind the shift, says Christian Nolting, the Private Bank’s Global Chief Investment Officer, in this week's episode.

Sep. 21, 2026

the yield rise goes global

PERSPECTIVES Viewpoint Fixed Income

The yield rise goes global

Bond yields are rising globally. Learn what is driving the market repricing and where opportunities may emerge for fixed-income investors.

Sep. 18, 2026

saudi oil supply at risk

PERSPECTIVES Memo

Saudi oil supply at risk

Rising geopolitical tensions and renewed concerns over Saudi oil supply have triggered market volatility. Our experts examine the implications for energy prices, equities and long-term investment strategy.

Sep. 15, 2026

sports investing stability growth value creation dekstop

PERSPECTIVES Special

Sports Investing: Big league opportunities

Learn how professional sports are evolving into a major investment opportunity, supported by powerful brands, recurring revenues, global reach and pricing power.

Sep. 14, 2026

Global Chief Investment Officer Christian Nolting

PERSPECTIVES Quarterly update

PERSPECTIVES: Economic and asset class outlook – September 2026

In this quarterly update, our Global CIO Christian Nolting explains why financial markets remain resilient despite economic and geopolitical pressures. He explores how strong corporate earnings, AI investment and the macroeconomic backdrop are together shaping the outlook for equities, fixed income, gold and portfolio positioning.

Sep. 09, 2026

Glowing light bulb in hand, representing energy innovation

PERSPECTIVES Special

Europe’s electricity price premium

We examine why Europe's electricity price premium is becoming increasingly structural rather than cyclical, the implications for inflation, industry and economic growth, and where investors may find opportunities as Europe invests in resilience, electrification and energy infrastructure.

Aug. 19, 2026

See more

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S.

The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive.

This web page is not an offer to buy a security or enter into any transaction. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consider the sales restrictions relating to the products or services in question for further information. Deutsche Bank does not give tax or legal advice; prospective investors should seek advice from their own tax advisers and/or lawyers before entering into any investment.