This morning we launched a survey:
The degree of bullishness among investors regarding A-shares has deepened further, with 72% bullish, 18% bearish, and 11% neutral. In comparison, last week it was 65% bullish, and the week before that it was 56%. Once FOMO (fear of missing out) sentiment kicks in, macro data tends to be overlooked.
At the same time, 55% are bullish on U.S. stocks, and 57% are bullish on gold.
In just the past month, the market capitalization of A-shares has increased by nearly one trillion USD, and the Shanghai Composite Index has reached a ten-year high. The market has made significant progress, but there is still a large amount of cash on the sidelines.
This is an impressive portrayal of China by foreign media: cautious Chinese consumers have accumulated a large amount of cash, and now they are investing this money into the stock market — nearly 162 trillion yuan in savings (about 22.5 trillion USD), almost double the level of 2020, and this money is ready to flow into the stock market at any time.
Foreign media have expressed concerns about the current heat, but no one dares to be bearish.
Bloomberg interviewed six analysts, five of whom expressed caution to varying degrees. However, Bloomberg distilled a key takeaway — we have reason to believe that the current uptrend can continue. Compared to some past cycles, the increase in stock positions is more robust. Moreover, in recent days, the uptrend has expanded to a broader market, indicating that the momentum of the rise is more sustained.
Rory Green, Chief China Economist at GlobalData.TS Lombard, wrote: 'Stock valuations still look cheap, and the ratio of market capitalization to GDP and household savings is below historical averages. We believe there is still room for the stock market to rise. Of course, the stock market does not represent the economy, especially in China, where the latter often grows faster than the former.'$BTC $ETH #BNB创新高 #杰克逊霍尔会议
