A Remarkable Year for Equities
2025 was landmark year for China stock market. By year-end, A-share total capitalization exceeded 119 trillion yuan, with transaction volume reaching 417.82 trillion yuan - both records.
What Is Driving the Rally
Multiple factors contributed. Government policy support unwavering. Technology sector particular beneficiary, with AI, semiconductor and new energy companies leading gains. Domestic ETF scale exceeded 6 trillion yuan by year-end.
Foreign Capital Returns
Foreign investors returned. In Q1 2026, overseas capital inflows through QFII and RQFII channels exceeded 30 billion dollars, focused on commercial properties and residential areas.
Implications for New Investors
Current environment offers opportunities, but entering at peaks carries risk. Consider dollar-cost averaging and maintain diversified exposure across sectors.