Shanghai Stocks Surge to Decade High Amid Global Geopolitical Tensions

The Shanghai Stock Exchange has seen significant gains in recent days, with the Shanghai Composite Index reaching its highest close in over a decade. The index rose 0.5% on March 2, driven by a surge in energy and safe-haven stocks. Shares of companies such as CNOOC, PetroChina, and Sinopec climbed sharply after oil prices increased.

Meanwhile, Hong Kong-listed crypto ETFs fell across the board, with ChinaAMC Bitcoin ETF (3042.HK) down 2%, Bosera HashKey Bitcoin ETF (3008.HK) off 2.3%, and Harvest Bitcoin Spot ETF (3439.HK) losing 2.4%. Ether ETFs also declined.

The divergence between Shanghai and Hong Kong highlights a structural problem for crypto adoption among Chinese capital pools. Mainland Chinese investors remain barred from directly accessing Hong Kong's spot Bitcoin and Ethereum ETFs, despite potential pathways such as the QDII program and Cross-boundary Wealth Management Connect scheme in the Greater Bay Area.