Chinese Stocks in Best Monthly Run Since 2018 as Optimism Grows

Chinese stocks are set for their best run of monthly gains since 2018, driven by optimism over artificial intelligence, easing geopolitical tensions, and expectations of policy support.

The MSCI China Index has advanced nearly 9% in September, marking its fifth straight month of advance. Since bottoming out in April, the benchmark has rallied about 40%, outpacing the rebound in the S&P 500 and MSCI Asia following the tariff-driven selloff.

The recent rally has sparked a sense of “FOMO” among global funds, which are returning to a market they had once considered too risky. Chinese companies’ strides in AI, chips ...