According to public data, as of August 20, the balance of Shanghai, Shenzhen and North China margin financing was approximately 2.14 trillion yuan, and the balance of Shanghai and Shenzhen margin financing continued to show signs of steady increase. After the balance of the two-financial margin exceeded 2 trillion yuan again on August 5 this year, the balance of the two-financial margin has increased by more than 7% in just two weeks, and the balance of the two-financial margin has become an important supplement to the incremental funds in the A-share market.
In addition to the continued growth of the balance of margin financing and financing, the enthusiasm for foreign capital to flow into the A-share market continues to rise. According to data, as of August 18, the holdings of South Korean investors in Chinese stocks, including A-shares and H-shares, have increased by more than 5 billion yuan this year. According to the latest data, the holdings of Korean investors in Chinese stocks have reached nearly 25 billion yuan, becoming the most optimistic foreign capital all the way.
From the analysis of specific holdings, Korean investors pay very much attention to China’s high-quality assets. Judging from the top ten listed companies in the holdings, they are basically listed companies with high popularity in the A-share and Hong Kong stock markets. Among them, many listed companies fall into the category of new economy enterprises.
Although the holding scale of more than 20 billion yuan actually accounts for a lower proportion than the total market value of the A-share market, the analysis of the increase in holdings in the past one or two years basically reflects the true attitude of foreign investors towards the Chinese stock market. In addition to Korean investors, various foreign investment banks are also optimistic about the Chinese stock market and are constantly improving their ratings for Chinese stocks. The importance of foreign funds on Chinese stocks is also continuing to increase.
Entering 2025, the A-share market has performed well overall. Since the beginning of this year, the Shanghai Composite Index has risen by 12.51% and the Shenzhen Component Index has risen by 14.45%. Judging from the yearly increase, both exceed the yearly increase of the three major U.S. stock indexes. 2025 is a turning point in importance for the A-share and Hong Kong stock markets, and it is also an important year for global funds to re-examine Chinese assets.
When the A-share market effectively breaks through 3731 points, the market shows signs of accelerating growth. As of August 21, the Shanghai Composite Index’s highest point had climbed to 3787 points, only one step away from 3800 points. In fact, when the A-share market broke through 3674 points and 3731 points upward, it also means that the upward space of the A-share market has been released, and it may only be a matter of time before the stock market rushes to 4000 points.
