In 2025, the Chinese stock market will truly enter the bull market's first year!
Although the stock index once reached 5000 points and 6100 points, at that time everyone was in an immature stock market characterized by speculative bubble trading, where the phenomenon of market manipulation and the herd effect of retail investors emerged, failing to truly reflect the reasonable returns brought by effective financing, from issuance and listing to the operation of the securities market, including practitioners and market supervision, fraudulent listings, stock market manipulation, cashing out by major shareholders, and the blind speculation of retail investors.
Starting from 2025, the following major ecosystems will emerge:
1. National fortune, China has won in the trade war initiated by the United States in the face of strength, shifting from passive response to active compliance, and China's ideology and discourse power globally have risen sharply. Militarily, the whole world is deeply aware of China's strength and leadership, significantly reducing the risk of war.
2. The formal and comprehensive entry of patient capital. In the past, our country limited the entry of social security funds and pension funds into the stock market due to high risks. Now, the state is fully arranging for this type of patient capital to enter the stock market, which has completely changed the previous speculative trading ecology. Life savings must ensure safety and efficiency, so many core assets and undervalued companies with long-term growth potential are continually developing into a slow bull market, such as major banks, Yangtze Power, Beijing-Shanghai High-speed Railway, highways, and many companies like Beidahuang, fully entering a reasonable bull market. Patient capital requires safety and efficiency, so it emphasizes long-term companies and non-bubble long-term 'stewing'.
3. Regulation, multiple ministries of the country have repeatedly held press conferences together, shifting from a stock market primarily based on financing to protecting investors' rights and interests, advocating high cash dividends and comprehensive ecological governance from securities issuance, listing, and market supervision, with the aim of bringing China's securities market onto a normal and healthy track.
4. Transformation, China is strong and leading the world!
China has vast territory and a large population, with the entire society reaching a moderately prosperous level, which itself presents a huge market. The previous 'economic prosperity' was largely based on a large number of low-end, high-pollution, labor-intensive world factories. As Chinese society develops to a certain extent, a work system of three to four days per week, along with leisure tourism, medical insurance, and pension insurance, reflects the need for a time-consuming social transformation towards greater wealth.
Starting from 2025, it is evident that China's electromechanical, military industry, high-speed rail and subway, electric vehicles, hydropower and nuclear power, ultra-high voltage, and construction machinery are exporting to the world or following the Chinese model.
The era of comprehensive revival has arrived!