Chinese stock investor, Hou Yujie, balances running a traditional Chinese clothing store near the Forbidden City with investing in stocks. She recently put 10% of her money in the market and earned one month’s salary in just a few days, drawn in by the hot topic of stocks in China.

Chinese stocks, previously considered risky, are now attracting both local and foreign investors. The Shanghai Composite hit a decade high, and Hong Kong’s Hang Seng index is up 30% in 2025. Government signals are encouraging investors to jump in, with policymakers focusing on economic growth.

Chinese retail investors are cautiously entering the stock market after a decade-long slump. With limited investment options, they are turning to stocks due to a property sector slump and tight restrictions on other investments. Easing U.S.-China trade tensions and Chinese progress in AI and chips are also boosting sentiment.

Despite the stock market boom, everyday Chinese investors remain skeptical, viewing it as a gamble rather than a long-term investment. Retail investors drive 90% of daily trading in China, compared to 20% in the U.S., making the market susceptible to sudden downturns. Hou Yujie remains cautious, ready to pull her money out at any signs of trouble.

Read more at CNBC: Chinese stocks are on fire this year, drawing big interest from foreign and domestic investors