"Chinese Stocks Hit Decade Highs as Institutional and Wealthy Investors Drive Rally, Retail Still Cautious
Chinese stocks have surged to decade highs, with the Shanghai Composite Index up about 25% since April, driven mainly by state-backed institutions, insurers, mutual funds, and wealthy investors. Margin financing has hit its highest level since 2015, and newly registered private funds suggest rising participation from high-net-worth individuals. Despite the rally, retail investors and foreigners remain cautious, leaving significant capital still on the sidelines. Analysts say low valuations and excess liquidity could keep fueling the market as more retail money shifts from deposits into equities.