Core Viewpoint - The current bull market in A-shares is supported by state-owned funds and insurance capital, but the fundamental recovery and profit growth are still lagging behind [1] Group 1: Market Performance - Since August, the A-share market has seen an 8% increase in large-cap stocks and a 10% increase in small-cap stocks, with record trading volumes [1] - Recent market fluctuations indicate a volatile environment, raising questions about the sustainability of the current bull market [1] Group 2: Liquidity Variables - The two key liquidity variables for the Chinese stock market are retail investors and institutions, particularly foreign capital which has historically been under-allocated [1] - The trend of "deposit migration" is a natural outcome of the ultra-low interest rate environment, with Morgan Stanley estimating that excess time deposits in China will amount to approximately 6-7 trillion yuan during 2022-2023 [1] Group 3: Future Outlook - The future of deposit migration will depend on market momentum, macroeconomic narratives, and the continuity of policies [1] - Foreign capital remains at a historical low allocation in the Chinese stock market, suggesting that a correction in this "under-allocation" could provide sustained external momentum for A-shares [1] - Recent activities by hedge funds indicate that "hot money" is beginning to enter the market [1]