Group 1 - The core viewpoint of the article highlights a new generation of retail investors who are more willing to take risks and continue buying during market downturns, contrasting with older generations who experienced bear markets [1][3][4] - This new investment paradigm is reshaping the U.S. stock market, with young retail investors providing unexpected support during declines, as evidenced by significant net inflows into U.S. stocks and mutual funds during market dips [3][4] - Retail investors' resilience is not merely a temporary sentiment; their commitment to the market may help cushion the impact of high valuations and facilitate a smoother mean reversion process [3][4] Group 2 - The current generation of investors has a different memory compared to their predecessors, having primarily experienced bull markets, which encourages them to hold onto their investments during volatility [4][5] - The wealth effect is more pronounced than ever, with stocks comprising 36% of household financial assets in Q1 2023, the highest level recorded since the 1950s, leading to increased risk tolerance among investors [5][6] - Social changes, including the gamification of trading and the perception of trading as entertainment, have further engaged retail investors, contributing to their growing influence in the market [5][6] Group 3 - Retail investors have become a significant force in the market, accounting for approximately 20% of total options trading activity, surpassing levels seen during the "meme stock" frenzy of 2021 [6][7] - In the stock market, retail investors represent about 20% of total trading volume, which is double the levels seen in 2010, indicating their collective actions can materially impact market direction [7] - Despite concerns about potential market bubbles due to high valuations, if investor psychology has indeed shifted structurally, this new generation of bullish investors may act to limit market declines during downturns [7]

Core Viewpoint - The Central Urban Work Conference held from July 14 to 15, 2025, signifies a major shift in China's economic landscape, particularly in the real estate and stock markets, indicating that real estate will no longer be the primary driver of domestic demand, while the stock market will take on this role [3][4][5]. Group 1: Shift in Economic Dynamics - The capital's influence in urban work will gradually decrease, with real estate transitioning from being the engine of domestic demand to a mere indicator of it [4][5]. - A-shares will undergo a significant change in their operational logic, as they will now reflect the internal demand situation rather than just the production center [5][8]. Group 2: Investment Strategy Evolution - The focus of stock investment will shift to internal demand policies, including real estate, infrastructure, and consumer support policies, with real estate policy being the most critical [8][14]. - The investment paradigm will transition from a reliance on trading strategies to a focus on long-term holding of quality A-share stocks, as they will now play a crucial role in supporting domestic demand [15][19]. Group 3: Market Indicators and Trends - Following the conference, the VIX index has shown a decline, indicating a shift in investment strategies away from speculative trading towards more stable, long-term investments [16][18]. - The historical context shows that while the U.S. stock market has maintained a downward trend in the VIX index with rising stock prices, A-shares have been unique in their previous correlation with an increasing VIX index [20][21].