Chinese Stock Index Rises to Decade High as Investors Dump Bonds

A gauge of Shanghai-listed stocks closed at its highest level in a decade, as cash-rich local investors plow into a market that has surged amid easing trade tensions with the US.

The Shanghai Stock Exchange Composite Index jumped 0.9% to close at 3,728 on Monday, its strongest finish since August 2015, according to Bloomberg-compiled data. That cements a 20% turnaround since an April selloff, when US President Donald Trump’s sweeping tariffs roiled global markets. Trump extended a tariff truce with China last week.

The rally reflects a rising sense of optimism among small investors, flush with near record-high savings and ...