Goldman Sachs research report pointed out that currently only 22% of household financial assets are allocated to stocks and related products. The potential capital inflow scale exceeds 10 trillion yuan, providing sufficient incremental capital support for the market. This data shows that there is room for adjustment for residents’ asset allocation structure, and the stock market still has a large ability to absorb funds.
Small and medium-sized indexes such as CSI 1000 and CSI 500 have received special attention. These indexes benefit from a higher proportion of retail investors’ shareholding, and the industry’s allocation is relatively balanced. At the same time, the exposure to high-tech manufacturing industry is greater, which is in line with the current direction of economic transformation and upgrading. Data shows that the monthly changes in household deposits in 2025 showed a significant negative value, while deposits from non-bank financial institutions increased, suggesting that residents’ savings are shifting from bank deposits to financial assets such as stocks.
According to data from Goldman Sachs Trading Station, A-shares have been the market with the most net purchases in a row. The purchase multiple reaches 1.1 times, reflecting the continued optimism of foreign capital towards the Chinese stock market. In terms of technical indicators, about 10% of the Shanghai Composite Index constituent stocks hit a 52-week high, and 8% of the Shenzhen Composite Index constituent stocks also hit a new high.
About 90% of the Shanghai Composite Index and Shenzhen Component Index components trade prices above the 50-day moving average. This ratio shows strong market momentum, indicating that the concentration risk is fading. The market’s confidence in a wider sector is increasing, and the scope of investor participation is gradually expanding. Funds in securities firm margin accounts grew rapidly, with non-bank deposits increasing by 1.4 trillion yuan year-on-year in July, and deposits entering stock accounts have become an important driving factor.
