China's Capital Market: Momentum for a Resilient "Slow Bull"

Guosen Securities, a leading investment bank in China, announces that the capital market is entering a stable and resilient "slow-bull" phase. This trend is attributed to ample liquidity, supportive policies, and solid economic fundamentals. The market's gradual growth reflects the maturity of China's financial system in supporting long-term development.

Institutional investors have been the key drivers since July, significantly affecting A-share growth. By August 2025, new institutional stock accounts surged, indicating a shift from retail-driven to institutional-led dynamics. Policy initiatives like the "Implementation Plan for Promoting Medium- and Long-Term Funds into the Market" support this trend, ensuring stability over aggressive stimulus.

Economic fundamentals show signs of recovery, as evidenced by the Producer Price Index (PPI). Policies addressing industries with overcapacity are improving the market environment. The "slow bull" pattern stands for market resilience, supported by steady fund flows and gradual economic improvements.