China's Bull Run: Stocks Skyrocket to Nine-Month Highs

Chinese stocks made significant strides on Wednesday, reaching their highest point in nine months as investor focus shifted from U.S. tariff threats to a more bullish market outlook. The Shanghai Composite Index saw a 0.6% climb to 3,636 points, marking a transition into a bull market, typically defined as a 20% rise from recent lows. This marks three months of consecutive gains.

In a positive turn for global trade relations, U.S. and Chinese officials agreed to extend their tariff truce following productive discussions aimed at resolving their longstanding trade war. However, investors are increasingly turning their attention to domestic concerns, according to Wang Zhuo, a partner at Shanghai Zhuozhu Investment Management.

Adding to market optimism, Goldman Sachs adjusted its outlook for Chinese stocks, attributing this to an improving scenario for a potential U.S.-China trade agreement and low interest rates driving investment into high-dividend blue-chip stocks. China's ongoing governmental crackdown on excessive competition is also anticipated to benefit corporate earnings through better industrial regulation.

(With inputs from agencies.)