financetom
World
financetom
/
World
/
Chinese stocks at decade high lure hesitant retail investors
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Chinese stocks at decade high lure hesitant retail investors
Aug 27, 2025 1:31 AM

SHANGHAI (Reuters) -Chinese stocks are at decade highs after a rally powered by support from state-backed institutions and bigger investors, with retail money slowly making their way back into shares providing a fresh tail wind.

Investors have so far shrugged off the anaemic economic recovery in China and, while Shanghai stocks are at levels not seen since 2015.

Analysts point to relatively low valuations and ample dry powder as reasons for the rally to continue. They expect retail investors to gradually rotate out of low-yielding deposits into stocks.

The Shanghai Composite Index is up about 25% from April lows. 

Here are some charts on China's stock markets. 

1/ SOARING MARGIN FINANCING    

Outstanding margin financing reached 2.18 trillion yuan ($304.77 billion), the highest level since mid-2015, while the earnings yield for Chinese stocks are higher than those from Chinese bonds.

2/ COMING IN HOT

Stock investments by Chinese insurers, mutual funds and ETFs are up as regulators nudge institutional investors into the share market. The metrics suggest that the rally this time around is being driven by local long-term investors and not fast money.

3/ WEALTHY INVESTORS ON THE WAY 

Newly-registered private securities funds in July hit the highest level by size since late 2021, suggesting high net worth investors are also entering the market. 

4/ BUT RETAIL AND FOREIGN MONEY STILL ON THE FENCE 

Data shows retail investors are not rushing to open new accounts, while foreign investors have also not invested heavily in China onshore stocks so far this year. 

That also suggests, according to some analysts, there is still ample money sitting on the sidelines that could jump in. 

​

($1 = 7.1529 Chinese yuan renminbi)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Iran War Prospects Lift European Bourses Midday
Iran War Prospects Lift European Bourses Midday
Apr 1, 2026
07:39 AM EDT, 04/01/2026 (MT Newswires) -- European bourses tracked solidly higher midday Wednesday as traders awaited a slated evening address by US President Donald Trump in which he may announce that US military actions in Iran will end within two to three weeks. Tech and bank stocks led gains on continental trading floors, while oil shares lagged. Investors also...
CANADA STOCKS-TSX opens higher on hopes of de-escalation in Iran war
CANADA STOCKS-TSX opens higher on hopes of de-escalation in Iran war
Apr 1, 2026
April 1 (Reuters) - Canada's resource-heavy stock index opened higher on Wednesday after U.S. President Donald Trump signaled a resolution to the Middle East conflict could be within reach, though a fall in oil prices capped gains. At 09:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite Index was up 0.6% at 32,973.13. ...
FOREX-Dollar falls for second day as Middle East ceasefire expectations rise
FOREX-Dollar falls for second day as Middle East ceasefire expectations rise
Apr 1, 2026
* Yen, euro and sterling gain vs. dollar * Ceasefire expectations rise but mixed signals keep FX markets cautious * US jobs report and labour market outlook may influence Fed rate cut expectations (Updates for early European afternoon trading) By Satoshi Sugiyama and Samuel Indyk LONDON, April 1 (Reuters) - The dollar dropped for a second day on Wednesday as...
Exchange-Traded Funds, Equity Futures Gain Pre-Bell Wednesday as Iran War De-Escalation Hopes Drive Sentiment
Exchange-Traded Funds, Equity Futures Gain Pre-Bell Wednesday as Iran War De-Escalation Hopes Drive Sentiment
Apr 1, 2026
09:06 AM EDT, 04/01/2026 (MT Newswires) -- The broad market exchange-traded fund SPDR S&P 500 ETF Trust ( SPY ) was up 0.8%, and the actively traded Invesco QQQ Trust (QQQ) was 1.1% higher in Wednesday's premarket activity as signs of potential de-escalation in the Iran conflict and falling oil prices improve risk sentiment. US stock futures were also higher,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved