Is the bull market for Chinese A-shares here? The Shanghai Composite Index hits a ten-year high, and 'deposit relocation' ignites investment enthusiasm

Yesterday (the 18th), the A-share market in mainland China was filled with cheers from investors. The Shanghai Composite Index broke through 3741.29 points, achieving its highest level in nearly a decade since the end of August 2015. At the same time, both the Shenzhen Component Index and the ChiNext Index also hit new highs since October 8, 2024, prompting A-share investors to shout that the bull market has arrived. (Background: Chinese A-share retail investors are calling for cryptocurrencies: Bitcoin is digital gold, Ethereum is the Web3 leader, and SOL is the blockchain casino leader) (Background information: NVIDIA and AMD agreed to Trump’s “15% AI chip tax”, exchanging H20 and MI308 imports to China, with gross profits directly remitted to Washington) The bull market for Chinese A-shares has arrived, with yesterday (the 18th) seeing cheers from investors in the A-share market in mainland China. The Shanghai Composite Index broke through 3741.29 points, achieving its highest level in nearly a decade since the end of August 2015. Meanwhile, both the Shenzhen Component Index and the ChiNext Index also broke through new highs since October 8, 2024, leading A-share investors to exclaim that the bull market has come. The phenomenon of 'deposit relocation' is accelerating, with a flood of liquidity flowing into the stock market. Relevant analysis indicates that the current biggest driver of the A-share market is the phenomenon of 'deposit relocation'. CICC research points out that new deposits from non-bank institutions in mainland China reached 2.14 trillion yuan in July, an increase of 1.39 trillion yuan year-on-year. The decline in deposit interest rates has weakened the attractiveness of fixed-income assets, prompting a large amount of capital to seek higher return outlets, and the stock market has evidently become a reservoir for this massive inflow of funds. CITIC Securities divides the wealth allocation of residents into three stages: stable growth, accelerated accumulation, and the current deposit relocation. With declining interest rates and the maturity of financial management concepts, some funds are flowing from deposits to low-volatility assets, with a small proportion entering the stock market. CICC emphasizes: 'Against the backdrop of declining deposit rates, new deposits from non-bank institutions are flowing more into the stock market.' In addition, the asset structure of residents is also changing. As the returns on real estate investments decline while stock returns outperform bonds, the public's capital allocation has formed a pattern of multiple injections, creating ample buying power in the A-shares. Led by AI and computing power, the technology sector has become the strongest engine. Currently, not only in the US stock market, but Chinese investors also favor AI and technology themes. In yesterday's rising market, AI, semiconductor, and computing power sectors all strengthened, with the liquid cooling server sector even staging a circuit breaker surge. Meanwhile, some analyses point out that China is currently viewing companies like DeepSeek (AI large language model) and Yushu Technology (robotics) as sparks to reignite investor enthusiasm. Therefore, China's technological innovation not only raises stock market valuations, but also carries expectations for China's economic transformation and upgrading. However, it is worth noting that the current global political and economic environment remains highly uncertain, and with the ongoing poor performance of the real estate economy that China has heavily relied on, some analyses suggest that the frenzy in A-shares may not rule out a repeat of the brief market driven by policy impacts seen at the end of September last year; however, this may soon come to an end again... Therefore, for investors looking to invest in A-shares, it is still necessary to remain cautious, do thorough research, and avoid chasing highs that may lead to losses of principal. Related reports: Chinese university students issue dogecoin and promptly withdraw liquidity = 4-year prison sentence! Be careful of entering the 'minefield' of cryptocurrency and ending up in jail. China’s 'stablecoin ban' mandates that citizens are not allowed to discuss: choking off the phantom of the dollar, quietly building a yuan ark in Hong Kong. The People's Bank of China requires financial institutions: blockchain + AI to be included in 'infrastructure'. 'Is the bull market for Chinese A-shares here? The Shanghai Composite Index hits a ten-year high, and 'deposit relocation' ignites investment enthusiasm' was first published on BlockTempo (the most influential blockchain news media).