Chinese stocks rallied heading into the year-end, boosted by a rotation into some of 2023’s worst-performing sectors and a supportive global backdrop.

The CSI 300 Index gained 2.3% to cap its best day in five months, as overseas investors bought onshore equities worth 13.6 billion yuan ($1.9 billion) on a net basis in Thursday’s session. A subgauge of industrial stocks — this year’s biggest loser on the CSI 300 — surged the most, climbing nearly 4%. The yuan strengthened in both onshore and offshore markets.