The A-share market has achieved its fifth-ever '9-day consecutive rise' in history.
This year, the A-share market has been continuously setting new historical records!
In August, the total market capitalization surpassed 100 trillion yuan for the first time. In October, the Shanghai Composite Index once again reached the 4,000-point mark after a decade. Today, it achieved an impressive 'nine-day consecutive rise,' marking the fifth such occurrence in history.
(The content of this article consists solely of objective data and information and does not constitute any investment advice.)
In 2025, various types of capital flowed into the A-share market. Despite differing rationales, they collectively fueled this epic-level market rally.
Insurance funds and leveraged capital have clearly emerged as the main contributors to incremental funding in the A-share market this year.
Insurance funds, pressured on both the asset and liability sides, actively allocated equity assets. With an increase of 1.48 trillion yuan in equity scale in the first three quarters, they became a dominant force in A-share inflows.
Leveraged capital net purchased a staggering 672.3 billion yuan worth of A-shares during the year, acting as a 'market amplifier' that significantly boosted market enthusiasm. Since September last year, the two major upward movements of the A-share index were accompanied by growth in margin trading balances.
Additionally, stock-focused private equity funds targeting high-net-worth clients continued to see rising positions this year. The proportion of fully invested funds increased to 70.34%, breaking through the 70% threshold for the first time this year (as of December 12).
Index funds have become another significant stabilizing force in the A-share market.
Equity ETFs saw a net inflow of 367.9 billion yuan versus a net redemption of 416.8 billion yuan from existing equity-oriented funds, reflecting a clear 'exit upon breaking even' mentality.
Regarding newly issued funds: equity funds raised 417.3 billion yuan this year, while mixed funds raised 159.8 billion yuan.
Insurance funds and leveraged capital have become the most significant incremental sources for the A-share market, revealing that behind this year's market surge lies the high-net-worth population taking the lead in seeking new asset allocation solutions amidst an unprecedented low-interest-rate era.
Actively managed equity funds with a higher proportion of retail investors continue to experience 'redemption upon breakeven,' while index funds have emerged as a new tool for individual investors entering the market.
Behind the shift in dominance between actively managed equity funds and passively managed equity funds, institutional capital is quietly reallocating.
Over the past decade, the share of institutional holdings in mixed funds has plummeted from 61% to 16%, while in equity funds it has surged dramatically from 32% to 60%.
From this point forward, a golden age for ETFs has forcefully emerged on the map of China’s capital markets. In 2025, ETFs consecutively breached the 4 trillion, 5 trillion, and 6 trillion yuan thresholds, with each leap taking progressively less time: 204 days, 131 days, and 122 days respectively.
This is not merely a numerical leap but also signals a profound reshaping of the A-share ecosystem by passive funds, with the potential to enhance pricing power.
This year, 1.16 trillion yuan flowed into ETFs. While broad-based index ETFs recorded net outflows of 200 billion yuan, industry-themed ETFs saw net inflows of 270 billion yuan, indicating that retail investors prefer using 'offensive tools' to capture market opportunities.
A closer look at this year’s ETF capital migration map reveals:
The flow of hundreds of billions of yuan shows that Hong Kong technology, securities, Hong Kong innovative pharmaceuticals, and robotics sectors are the most sought-after tracks.
The Hang Seng Technology Index, with inflows exceeding 100 billion yuan, the Hong Kong Stock Connect Internet sector with inflows of 75 billion yuan, and the Securities Company, Hong Kong Stock Connect Technology, and Hong Kong Stock Connect Innovative Pharmaceuticals sectors, each with inflows surpassing 30 billion yuan.
The indices with the largest absolute scale growth are the CSI 300 and Hang Seng Tech, with ETFs tracking them increasing by RMB 209.2 billion and RMB 114.6 billion respectively in 2025.
The indices with the fastest scale growth are the robotics industry, Hang Seng Stock Connect China Technology, and STAR Market AI, with annual scale growth exceeding 70 times. Themes such as power grid equipment, Stock Connect innovative pharmaceuticals, and Stock Connect non-banking sectors have grown more than 30 times.
The most popular new equity index is tracked by ETFs focused on free cash flow, Hang Seng Stock Connect Technology theme, STAR Market Composite Index, and CSI Cash Flow. The first two have surpassed RMB 10 billion in scale, reaching RMB 10.8 billion and RMB 10.7 billion respectively.
As we approach the end of 2025, we have never felt so deeply that an unprecedented era of low interest rates has truly arrived.
From the first drop in deposit interest rates below 1% at the beginning of the year to the collective withdrawal of five-year large-denomination certificates of deposit by the six major banks at the end of the year, even the seven-day annualized yield of money market ETFs has quietly fallen below 1%...
Money is quietly losing its comfortable resting place.
Insurance funds and high-net-worth individuals were the first to act this year, with insurance funds significantly increasing their allocation of equity assets in the third quarter, approaching historical highs.
Leveraged capital, acting more aggressively, has broken historical records, with margin balances reaching RMB 2.526 trillion, setting a new all-time high.
The 'asset famine' faced by insurance funds is also confronting the RMB 160 trillion in household savings. However, rather than reducing deposits and increasing equity holdings, household savings have partially been converted into 'fixed income plus' and insurance products, indirectly participating in equity investments.
The increased allocation of equity assets by insurance funds represents a long-term trend. As the institutional environment for 'long-term investment with long-term returns' continues to develop, absolute return-focused funds seeking stable returns will steadily enter the market. This will help gradually reduce volatility in the A-share market and drive it towards a more stable and mature phase.
Will residents' savings shift occur next year?
