(Yicai) Aug. 18 -- Shanghai’s benchmark stock index reached its highest point in a decade today, leading several analysts to say the bull market could have legs.

The Shanghai Composite Index [SHA: 000001] closed up 0.9 percent at 3,728.03 points after hitting 3,745.94 intraday, the highest since August 2015.

Elsewhere, the Shenzhen Component Index [SHE: 399001] added 1.7 percent to 11,835.57, while the ChiNext Index [SHE: 399006] jumped 2.8 percent to 2,606.20. Both of these indexes reached their highest points in more than two years during the day.

Combined trading volume on the Shanghai, Shenzhen, and Beijing exchanges surged 24 percent from the previous day to CNY2.8 trillion (USD390 billion). More than 4,000 stocks gained across the three bourses, while around 1,000 retreated.

The stock market may be in the early stages of a new bull cycle, Fan Jituo, strategy analyst at Cinda Securities, told Yicai. Although trading volume has increased since the rally began in April, it remains below levels seen during last October’s bull run, and securities financing is still relatively limited, he noted.

Fan added that volatility may be around the corner as listed firms begin releasing interim results in late August, but this is unlikely to alter the broader upward trend. Future policy signals, including the 15th Five-Year Plan  covering next year to 2030 and the 2026 policy outlook, could further support the market, he said.

Yu Fenghui, an advisor at the Top 100 Hong Kong Listed Companies Research Centre, said the potential for continued gains depends on several factors, including the macroeconomic environment, corporate earnings, policy direction, and global economic conditions.

If economic growth holds steady, corporate profits rise, and policy support strengthens, the stock market may gain further momentum, Yu said. Though investor sentiment is upbeat, he advised investors to remain cautious and manage risks.

Editors: Dou Shicong, Emmi Laine