Goldman Sachs(US:GS) Zhi Tong Cai Jing·2025-08-22 05:53Core Insights - The current rally in the Chinese stock market is primarily driven by retail investor funds, with a significant amount of "existing funds" yet to enter the market, providing further upward momentum, particularly for small and mid-cap stocks [1] Group 1: Market Dynamics - Only 22% of household financial assets are currently allocated to stocks and related products, indicating a potential inflow of over 10 trillion yuan, which supports the market with ample incremental funds [1] - The trend suggests that the Chinese stock market, especially small and mid-cap stocks, has considerable room for growth, with indices like the CSI 1000 and CSI 500 being highlighted for attention [1] Group 2: Market Performance Indicators - Recently, A-shares have become the most net bought market, with a buying ratio of 1.1 times [1] - Technical indicators show that the upward trend in the Chinese stock market is broadening, with approximately 10% of the Shanghai Composite Index and 8% of the Shenzhen Component Index stocks reaching 52-week highs [1] - About 90% of the stocks in the Shanghai Composite Index and Shenzhen Component Index are trading above their 50-day moving average, indicating strong market momentum and a reduction in concentration risk, enhancing confidence across a wider range of sectors [1]