Chinese stocks are on fire this year, drawing big interest from foreign and domestic investors
When Hou Yujie doesn’t persuade customers to rent traditional Chinese clothes for photographs of the country’s famous Forbidden City, he and his friends control stocks.
Hou has recently released 10% of its money. He won a monthly salary in a few days – and he was excited.
“Interest rates for bank deposits are so low for bank deposits.” Stocks are currently a warm issue. “
Chinese stocks, once seen as singular by many people, are influenced by the latest return on both local and foreign investors. . Shanghai composite At the beginning of this month, it reached the highest level of the decade. Hong Kong’s Exceed The index also increased by 30% in 2025, since 2017 the largest annual advance has increased by about 36%.
Shanghai composite since 2015
Government signals encourage investors to skip.
“There is a change in politics because the CIO Hao Hong of Lotus Asset Management said,” The pollution is increasingly evident, “CIO Hao Hong said. He said. “Policy makers felt that the government should do something to focus on economic growth instead of minimizing the risk.”
Chinese investors, the beginning of the rally nicknamed “9.24 Performance”, until September 24, 2024 – the governor of the country and other senior financial chiefs of the country, when they have a rare coordinated press briefing by announcing measures to support the economy and the stock market.
On Monday, the authorities organized a similar media briefing and declared that China’s capital markets expanded the “Circle of friends” thanks to the renewed interest of overseas investors.
According to the daily trade report, Cathie Wood’s ARK investment management funds reopened its positions this week in Alibaba for the first time in four years.
The government is also trying to force more corporate money to make Chinese markets a reserve store like the USA. The regulators made insurance companies and state investment funds- traditionally required to increase their stocks.
Chinese retail investors not only take clues from the government. There are also several investment options.
Chinese stock investor Hou Yujie rented traditional Chinese clothes near the forbidden city in Beijing. 18 September 2025.
CNBC
Retail Investor Push
After a major stock accident ten years ago, ordinary Chinese citizens were careful about putting money on the stock market because they were often burned. However, the property sector is still strictly looking at the stock exchange again in a long -term decline and the restrictions on investments outside the country. The US-Chin trade war and the progress of China in the chips increased emotion.
“Artificial intelligence and drones are developing rapidly in China. I hear it is a great potential for these stocks.” He said.
However, it may take some time to transform the daily Chinese mentality.
“Most of the retail investors still believe that there is a gambling. This is a casino. Nobody believes it is a long -term investment. Very different from the US.” He said.
According to HSBC data, unlike the United States, where retail investors constitute approximately 20% of trade, China’s average investors use 90% of daily trade.
This means that the Chinese stock explosion can quickly return to the explosion.
“As soon as the market hears or feels, I will take my money and run for my life,” Hou laughed.
