(Bloomberg) -- Elevated trading activity is rousing animal spirits in China’s stock market, as traders position for further gains.

Turnover on mainland exchanges reached 2.15 trillion yuan ($300 billion) on Wednesday. That was the highest since Feb. 21, when risk appetite soared following Deepseek’s AI breakthrough. The recent fervor has pushed the value past the key 2 trillion yuan mark, a level many market watchers view as a sign that the bulls are in control.

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Chinese stocks have risen in recent months, with ample local liquidity likely to sustain the rally. On Wednesday, the Shanghai Composite gauge climbed above its Oct. 8 intraday high of 3,674.4, a level long seen as a potential hurdle. Meanwhile, the tech-heavy ChiNext Index rallied 3.6%, marking its best day since January.

A Bank of America survey of global fund managers shows sentiment on China has turned “enthusiastic”, supported by expectations that Beijing will take steps to tackle deflation. Recent policy moves have also guided more flows toward stocks, and local brokerages are increasingly drawing comparisons between the current rally and previous bull markets.

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