The Nasdaq Golden Dragon China Index climbed over 2% on Wednesday, with most popular US-listed Chinese stocks posting gains. Baidu surged nearly 10%, while Alibaba rose more than 6%. Futu Holdings gained over 4%, with PDD Holdings and Bilibili both advancing more than 3%. JD.com increased over 2%.

Meanwhile, the Shanghai Composite Index closed up 1.17% and the Hang Seng Index finished 1.22% higher. Market observers noted growing optimism toward Chinese equities, with Jean-Marie Mercadal, CEO of New Vision Asset Management, expressing strong confidence in their prospects. He stated that Chinese stocks remain attractive compared to US equities due to their valuations and that global investors remain underweight. He believes international capital will flow back into Chinese markets as stock performance continues to improve.

Additionally, Chinese retail investors have accumulated significant savings in recent years. With current low interest rates in China, these investors are expected to become a driving force for Chinese stocks, supporting further market gains in the second half of the year.