Core Viewpoint - The recent surge in A-shares has led to significant changes in deposit flows, with a notable increase in non-bank deposits and a decrease in household deposits, indicating a shift in asset allocation among residents [1][2]. Group 1: A-share Market Dynamics - A-shares have shown a strong upward trend, with the Shanghai Composite Index reaching above 3700 points during the week of August 11 to August 15 [1]. - In July, non-bank deposits increased by 2.14 trillion yuan, while household deposits decreased by 1.11 trillion yuan, reflecting a significant shift in investment behavior [1]. Group 2: Deposit Trends - From January to July, total RMB deposits increased by 18.44 trillion yuan, with household deposits rising by 9.66 trillion yuan and non-bank financial institution deposits increasing by 4.69 trillion yuan [1]. - The July data indicates a stark contrast compared to the same month last year, where household deposits decreased by 780 billion yuan and non-bank deposits increased by 1.39 trillion yuan [1]. Group 3: Investment Behavior - The shift in deposits is attributed to a large-scale movement of household funds into wealth management products, funds, and stocks, driven by the rising stock market [2]. - The number of new A-share accounts opened in July reached 1.9636 million, a year-on-year increase of over 70%, indicating heightened market activity [2]. Group 4: Economic Insights - Analysts suggest that the current trend of funds moving into non-bank products and the stock market may continue, influenced by interest rate cuts and the search for higher yields [3].

Group 1 - The A-share market has shown a strong upward trend recently, with the Shanghai Composite Index reaching above 3700 points during the week of August 11 to August 15 [1] - In July, there was a significant increase in non-bank deposits, raising concerns about "deposit migration," as non-bank deposits include those from securities, trusts, wealth management, and funds [1] - According to the People's Bank of China, RMB deposits increased by 18.44 trillion yuan in the first seven months of the year, with non-bank financial institution deposits rising by 4.69 trillion yuan [1] Group 2 - In July alone, RMB deposits increased by 500 billion yuan, with household deposits decreasing by 1.11 trillion yuan and non-bank deposits increasing by 2.14 trillion yuan [1] - The shift in household deposits towards wealth management products and the stock market is attributed to the recent rise in the stock market, leading to a significant increase in non-bank deposits [2] - The number of new A-share accounts opened in July reached 1.9636 million, a year-on-year increase of over 70%, indicating heightened market activity [2]