Core Viewpoint - The A-share market is experiencing a significant return of investor interest, with new account openings in July 2025 reaching 1.9636 million, marking a 19.27% month-on-month increase and a 70.5% year-on-year increase, primarily driven by individual investors [2][4]. Group 1: Market Dynamics - The surge in new accounts is attributed to a combination of market recovery and policy incentives, with the overall market showing a positive trend [4]. - In July, major A-share indices recorded increases, with the Shanghai Composite Index rising by 3.74%, the Shenzhen Component Index by 5.20%, and the ChiNext Index leading with an 8.14% increase [5]. - Trading activity also saw a significant uptick, with total A-share transactions reaching 29.4 trillion shares and a total transaction value of 37.58 trillion yuan, both setting new monthly records for the year [5]. Group 2: Investor Behavior - The new individual investors are showing a preference for sectors with clear policy support and strong industry trends, particularly in technology and high-end manufacturing [8][9]. - The average turnover rate in July reached 91.71%, a 15.13% increase from June, indicating high trading activity, especially in small-cap stocks [10]. - New investors are characterized by a tendency to chase market trends and engage in short-term trading, with many showing interest in high-growth sectors like the ChiNext and STAR Market [10][12]. Group 3: Brokerage Industry Impact - The increase in new accounts is expected to boost brokerage firms' trading volumes and revenues, with a notable rise in margin financing balances, which reached 1.9710 trillion yuan by the end of July [5][13]. - Despite the growth in trading activity, brokerage commission rates are declining, with the average commission rate in Shanghai dropping by 8.2% year-on-year to 0.201‰ [14][15]. - Brokerages are adapting by shifting focus from traditional transaction services to value-added services, such as personalized investment advice and wealth management, to meet the needs of new investors [15][16].

Core Insights - The A-share market is experiencing a significant return of investor enthusiasm, with new account openings in July reaching 1.9636 million, a month-on-month increase of 19.27% and a year-on-year increase of 70.5% [1] - The surge in new accounts is driven by a recovering market and the release of policy benefits, with major indices showing positive performance in July [2][3] Market Dynamics - The trading activity in July saw a total of 29.4 trillion shares traded, an increase of over 800 billion shares from June, with a total transaction value of 37.58 trillion yuan, marking a new monthly high for the year [2] - Over 3,600 A-shares rose in July, with more than 1,000 stocks gaining over 10% and nearly 200 stocks increasing by over 30%, indicating a broadening of structural opportunities [2] - Margin trading balances reached 1.98 trillion yuan by the end of July, reflecting a significant inflow of leveraged funds, which has become a crucial support for the market [2] Investor Behavior - New individual investors are showing a preference for sectors with clear policy support and strong industry trends, particularly in technology and high-end manufacturing [4] - The average turnover rate in July was 91.71%, a 15.13% increase from June, with small-cap stocks being the primary focus for high-frequency trading [6] - New investors are characterized by a tendency to chase trends and engage in short-term trading, with a notable inclination towards high-growth sectors [5][6] Brokerage Industry Impact - The increase in new accounts is expected to drive growth in brokerage firms' trading volumes and revenues, with a notable rise in brokerage income observed in the first quarter of the year [7] - Despite the growth in trading activity, brokerage commission rates are declining, with the average commission rate in Shanghai dropping by 8.2% year-on-year [8] - Brokerages are adapting to the influx of new investors by enhancing their service offerings, focusing on value-added services and personalized investment education [9]