Chinese equities surged to close out the trading week today with the Shanghai Composite gaining 2.1%. At current levels, the Shanghai Composite is just 0.80% from taking out its pre-COVID peak made in early January.

Below is a 20-year chart of the Shanghai with a 5-year and 1-year chart included as well. While the index is still well off its highs made during bubble runs in 2007 and 2015, its recent run higher over the last few weeks has pushed it above the top of its 5-year downtrend channel (see second chart below).