Shanghai Stocks Soar to Decade High as Crypto ETFs Sink Amid Geopolitical Tensions

Shanghai stocks have reached a 10-year high, with the Shanghai Composite Index closing up 0.5% at 4,182.6 points on March 2. This surge in energy and safe-haven plays has pushed shares of CNOOC, PetroChina, and Sinopec sharply higher. The rally was driven by a surge in oil prices, which posted their biggest jump in four years.

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, with potential pathways discussed but no concrete policy action taken.