Xin Lang Cai Jing·2025-12-09 07:47Core Insights - The report from China International Capital Corporation (CICC) indicates that the A-share market has experienced five long cycles since 2005, and it is currently positioned for a "long-term" and "steady" new paradigm [1][4] Group 1: Paradigm Changes - CICC highlights two significant potential paradigm shifts: first, the rapid growth of household savings, which has surpassed 160 trillion yuan, combined with a low interest rate environment where bank deposit rates and government bond yields are below 2% [2][5] - The dividend yield of the CSI 300 index is expected to exceed government bond yields in 2024, supported by improved corporate cash flows and regulatory backing, making stocks one of the few potential high-return assets available [2][5] - The second shift involves long-term capital entering the market, with insurance funds' investments in stocks and securities expected to rise from 4.1 trillion yuan at the end of 2024 to 5.6 trillion yuan by the third quarter of 2025, increasing the allocation to 15%, above the historical average of around 12.5% [2][5] Group 2: Market Dynamics - If the influx of household funds and long-term investments aligns with an improved market performance, it could create a positive feedback loop, enhancing the capital market ecosystem and potentially leading the A-share market into a new paradigm that breaks the cycle of frequent rotations [2][5]