Mainland stocks climbed to a fresh decade-high on Monday, led by artificial intelligence and commercial aerospace shares as investors cheered a strong start to the year for onshore markets with record turnover.

In Hong Kong, the benchmark Hang Seng Index was up 376 points, or 1.44 percent, at 26,608 while the tech index was 176 points, or 3.1 percent, at 5,863 and the China enterprises was up 171 points, or 1.9 percent, at 9,220.

On the mainland, the benchmark Shanghai Composite Index was up 44 points, or 1.09 percent, at 4,165, its highest since July 2015, while the Shenzhen Component Index was 246 points, or 1.75 percent, higher at 14,366 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was 60 points, or 1.82 percent, up at 3,388.

The combined turnover of the main Shanghai and Shenzhen indexes was 3.6 trillion yuan, up from 3.12 trillion yuan on Friday.

The Star Composite Index, which reflects the performance of stocks on China's sci-tech innovation board, closed 2.88 percent higher at 1,855 while the Star 50 Index, which tracks the largest stocks listed on the board that also meet certain liquidity requirements, was 2.43 percent higher at 1,511.

HSBC analysts remain upbeat on the outlook for artificial intelligence in 2026, citing supportive regulatory policies.

Recent fundraisings and initial public offerings by companies across the AI supply chain are expected to lift sector valuations and underpin demand and spending in the medium-term, they added.

China's CSI Cloud Computing and Big Data Index jumped 7.8 percent while the AI shares rose 4.2 percent.

Commercial aerospace stocks extended gains, with China Spacesat hitting the 10 percent daily limit to a record high. ⁠

The rally followed an International Telecommunication Union filing, which showed that between December 25 and December 31, China applied for frequency and orbital resources for 203,000 satellites across 14 constellations.

The CSI Rare Earth Index rose 3.9 percent after a senior US official said Treasury Secretary Scott Bessent would urge Group of Seven nations and others to step up efforts to reduce reliance on critical minerals from China when he hosted a dozen top finance officials on Monday.

The CSI Defence Index jumped 5.9 percent to nearly a four-year ⁠high. (Reuters/Xinhua)