Surging stocks could help China become more than an export powerhouse

China’s robust export performance accounted for 32.7 per cent of GDP growth in 2025, offsetting subdued domestic demand and weak consumption. Although this momentum is expected to persist in 2026, it carries geopolitical risks. To secure sustainable prosperity, China must ignite its stock market as a catalyst for entrepreneurial confidence and consumer-driven growth.

At the dawn of 2026, the Shanghai Stock Exchange surged past 4,100 points, extending gains after its 10-year high last year. Meanwhile, in Hong Kong, a wave of AI-driven start-ups from mainland China – including Biren Technology, Knowledge Atlas Technology, GigaDevice Semiconductor and MiniMax Group – launched initial public offerings that captured investor enthusiasm and sent share prices soaring. Together, these developments have injected fresh dynamism into China’s capital markets.

The strong kick-off of the stock market in 2026 is a potential stimulus for the broader economy. A thriving equity market can reinforce entrepreneurial confidence, lift consumer sentiment and channel capital towards domestic industries. This will help to expand consumption’s share of gross domestic product, providing a counterbalance to export-driven growth.