Mainland stocks ended on Tuesday at their highest levels in more than a decade, buoyed by non-ferrous metals and financials, as investor sentiment remained upbeat ahead of the Lunar New Year holiday.

In Hong Kong, the benchmark Hang Seng Index was 363 points, or 1.38 percent, up at 26,710 while the tech index was up 83 points, or 1.46 percent, at 5,825 and the China Enterprises Index was up 95 points, or 1.05 percent, at 9,244.

Tech majors were up for a third consecutive session, up 1.5 percent, ‌with Baidu shares hitting its ⁠highest level since August 2023.

The benchmark Shanghai Composite Index ended up 60 points, or 1.5 percent, at 4,083 while the Shenzhen Component Index closed 193 points, or 1.4 percent, higher at 14,022 and the ChiNext, tracking China's Nasdaq-style board of growth enterprises, was up close to 25 points, or 0.75 percent, at 3,319.

The Star Composite Index, which reflects the performance of stocks on China's sci-tech innovation board, closed 1.45 percent higher at 1,720 while the STAR 50 Index, which tracks the 50 largest stocks listed on the board that also meet certain liquidity requirements, closed 1.84 percent higher at 1,429.

Non-ferrous ⁠metals and materials sectors led gains onshore and offshore, up 4.1 percent ‍and 4.6 percent, respectively, as copper prices hit a record high. Shares of Zijin Mining jumped 6.2 percent.

Insurance shares surged, with New China Life Insurance up 6.5 percent as the market expects better product sales in ‌the New Year, while securities climbed more than 4 percent.

"Clients see limited downside risk in ‍January, with capital returning to popular themes ‌and a tactical upside ‌window before ‌the holiday lull," UBS analysts said in a note.

"The rebound in Chinese equities since December has boosted confidence, with many investors planning to stay active ⁠until the later-than-usual Spring Festival in 2026."

The Shanghai Composite Index was up more than 6 percent since mid-December.

UBS is sticking with last year's top picks, remaining overweight on tech and internet stocks, ‌expecting AI progress to continue driving growth.

The ‍bank also favours the solar supply chain as a way to benefit from the global expansion of energy storage and China's domestic "anti-involution" initiatives. (Reuters/Xinhua)