Overview

• Shanghai shares have risen about 25% since April, lifting the benchmark to its highest level in a decade despite a weak economic backdrop.
• Sovereign funds, insurers, mutual funds and ETFs are leading purchases after regulatory nudges, distinguishing the advance from 2015’s retail-driven boom.
• Outstanding margin financing has reached roughly 2.18 trillion yuan, the highest since mid-2015, yet equals only about 2.2% of free float versus roughly double that share a decade ago.
• Retail re-entry remains cautious, with 1.9 million new accounts opened in July versus around 7 million per month at the 2015 peak, even as turnover exceeded 2 trillion yuan for 11 straight sessions.
• Household deposits are starting to shift from sub-1% bank rates toward markets, encouraged by a CSI 300 dividend yield near 2.5%, as officials weigh stimulus against the risk of fueling a bubble.