Core Viewpoint - The article emphasizes a significant trend where funds are shifting from the real estate market to the stock market, which is expected to elevate the valuation center of the stock market [3][5]. Group 1: Market Valuation Trends - The valuation center of the CSI 300 index was historically in the range of 15-20 times before 2012, while mature markets have a valuation center above 15 times, with the S&P 500 currently at 28.5 times [6][7]. - The article argues that the low valuation center of A-shares is unjustified, especially as the real estate cycle declines, leading to a necessary rebalancing between the real estate and stock markets [8]. Group 2: Historical Context of Market Rebalancing - The U.S. experienced a similar rebalancing from 2001 to 2007, where a housing bubble led to a significant drop in the S&P 500's valuation, mirroring the current situation in A-shares [10][12]. - Following the decline in the U.S. housing market, funds began to flow into the stock market, resulting in a steady increase in the S&P 500's valuation center [14][16]. Group 3: Current Economic Indicators - Recent financial data showed a rare negative growth in RMB loans, with a decrease of 50 billion, leading to widespread concern among experts [28][30]. - Despite negative loan growth, the stock market continued to rise, indicating that the market can perform well even amid adverse economic indicators [35]. Group 4: Future Market Dynamics - The article suggests that the current phase is characterized by a gradual flow of funds from the real estate market to the stock market, which may continue for the next 5-10 years [41][48]. - As the overall risk appetite of society increases, the proportion of investments in the stock market is expected to rise, leading to a more significant influx of funds over time [46][47]. Group 5: Long-term Investment Outlook - The article posits that the PE ratio of the CSI 300 could rise to 20 times in the future, reflecting a shift in market dynamics away from reliance on real estate [50]. - The transition away from real estate dependency is seen as a critical turning point, with the stock market potentially serving as a new wealth reservoir for residents [38][50].