A year ago today, on September 24, 2024, China launched a powerful combination of policies to inject crucial momentum into its capital markets. This has since ushered in a historic slow-burn bull market for A-shares.

The total market capitalization of the Shanghai and Shenzhen exchanges has soared from 81.8 trillion yuan to 116.6 trillion yuan. Foreign capital has also turned from a two-year net selling trend to a net inflow of over $10 billion.

This transformation has created a new capital market that is technology-driven, centered on leading companies, and poised to be a key "incubator" for China's technological innovation and industrial upgrading.

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Four Key Changes Over the Past Year

1. Breakthroughs in Market Capitalization and Stock Performance

Over the past year, Chinese assets have become increasingly attractive globally. From September 24, 2024, to mid-September 2025, the Shenzhen Component Index surged by 61.7%, significantly outperforming major global indices. The combined market capitalization of the Shanghai and Shenzhen exchanges grew by 42.54%—a net increase of 34.8 trillion yuan—to reach 116.6 trillion yuan.

2. Sustained Capital Inflow

The rising appeal of Chinese assets is also reflected in the continuous inflow of capital. In the first half of 2025, foreign capital net-purchased $10.1 billion in domestic stocks and funds, reversing the previous two-year net-selling trend. This shift signals a growing willingness among global investors to allocate to China's stock market.

3. Shift from "Small-Cap Speculation" to "Concentration in Leaders"

Unlike past bull markets, the past year is marked by a strong structural shift. Capital has migrated from speculative "small-cap plays" to a focus on established market leaders, creating a "dual-engine" dynamic driven by high-dividend stocks and technology growth companies. While the financial sector's market cap grew by 25.18%, the electronics equipment and information technology sectors were the true growth engines, with their market caps soaring by 113% and 60.13%, respectively. 

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4. Formation of a Virtuous Cycle of Investment and Financing

The rally has helped create a positive feedback loop between investment and financing. In the first half of 2025, A-share listed companies achieved a combined operating revenue of 35.01 trillion yuan, demonstrating solid intrinsic growth. Corporate commitment to innovation has also accelerated, with R&D spending exceeding 810 billion yuan.

Furthermore, investor confidence has been restored, with new capital flowing into the market. A-share account openings surged, and daily trading volume has consistently exceeded 2 trillion yuan. The balance of margin trading and securities lending also reached a historic high of 2.4 trillion yuan, surpassing the peak of the 2015 bull market.

Outlook: A New Long-Term Growth Paradigm

The past year has been a period of profound transformation for China's capital market. Experts agree that this rally is not merely a temporary rebound, but a fundamental shift toward a new paradigm of long-term, high-quality growth. While external complexities persist, China's economic resilience and the capital market's indispensable role in driving technological innovation and industrial transformation lay a solid foundation for future development.