2 1 Shi Ji Jing Ji Bao Dao·2025-10-28 23:14Core Viewpoint - The Shanghai Composite Index has returned to the 4000-point mark for the first time in 10 years, signaling a significant market milestone and reflecting a structural bull market led by new economy sectors [1][2][3]. Market Performance - On October 28, 2025, the Shanghai Composite Index briefly surpassed 4000 points, marking a notable recovery since August 18, 2015, although it closed at 3988.22 points, down 0.22% for the day [3][4]. - Year-to-date, the Shanghai Composite Index has risen by 18.99%, the Shenzhen Component Index by 28.95%, and the ChiNext Index by 50.80% [4]. Market Drivers - The recent breakthrough is attributed to two main factors: improved consensus in Sino-US trade negotiations, which has alleviated external uncertainties, and the "14th Five-Year Plan" emphasizing high-quality development, technology independence, and green transformation [4][10]. - The market's trading volume reached 2.16 trillion yuan, a decrease of 191.3 billion yuan from the previous day [4]. Structural Changes - The market has undergone significant changes over the past decade, with total market capitalization increasing from 52 trillion yuan to 107 trillion yuan, and the number of listed companies growing from over 2600 to more than 5400 [9][10]. - The leading sectors have shifted from traditional industries to new economy sectors such as renewable energy, artificial intelligence, semiconductors, and biomedicine [10]. Investment Strategies - Market participants are divided on strategies at the 4000-point level, with some opting to take profits while others remain optimistic about long-term investments in technology [11][14]. - Analysts suggest that the technology sector will continue to be the main investment focus, with opportunities in sub-sectors like optical modules and other areas supported by actual orders and performance [15][18]. Future Outlook - Analysts predict that the market may experience short-term fluctuations but is likely to continue its upward trajectory, particularly in technology stocks, as the economic transformation supports market growth [16][20]. - Major financial institutions, including Goldman Sachs and JPMorgan, have expressed positive long-term outlooks for the Chinese stock market, anticipating significant index gains by 2027 and 2026, respectively [17].