{"id":228399,"date":"2025-09-15T09:44:10","date_gmt":"2025-09-15T09:44:10","guid":{"rendered":"https:\/\/www.europesays.com\/us\/228399\/"},"modified":"2025-09-15T09:44:10","modified_gmt":"2025-09-15T09:44:10","slug":"chinas-stock-rally-poised-to-run-on-as-household-savings-pour-into-equities","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/228399\/","title":{"rendered":"China\u2019s stock rally poised to run on as household savings pour into equities"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Households continued to shift money into mainland China\u2019s US$12.7 trillion stock market last month, suggesting that a rally in equities has room to run, according to data published by the central bank.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Deposits at non-banking financial institutions rose by 1.17 trillion yuan (US$164.3 billion) in August, marking a second month of increases after July saw an inflow of 2.15 trillion yuan, data from the People\u2019s Bank of China showed. The figure covers money parked at brokerages, mutual-fund companies and trust firms.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">M1, a money-supply gauge measuring demand deposits that can be taken out from banks at any time, rose 6 per cent year on year, the fastest since January 2023, indicating that money was primed for investment after conversion from term deposits, according to the data.<\/p>\n<p>The statistics help confirm that a <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/business\/china-business\/article\/3323579\/chinas-us22-trillion-savings-and-global-investors-potent-mix-equity-markets?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">bull run<\/a> that drove the Shanghai Composite Index to a decade high last month was largely fuelled by a rotation out of banking deposits as people sought more attractive alternatives. While China\u2019s economy remained sluggish, investors were more focused on the prospects of stock gains thanks to advances in artificial intelligence, possible stimulus measures and a de-escalation of tensions with the US.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cLow-interest-rate policies are squeezing the returns from traditional banking deposits,\u201d said Wang Kai, an analyst at Guosen Securities in Shanghai. \u201cThat has set the stage for capital shifting out for better returns. The trend is taking hold that the rotation is heading towards the capital market now.\u201d<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">After years of underperformance, Chinese stocks now stand out across asset classes. The earnings yield of China\u2019s biggest listed companies, which measures how much companies return in earnings for each dollar invested, is at 5.5 per cent, according to Bloomberg data. That compares with the 1.791 per cent yield on China\u2019s 10-year government bonds and the less than 1 per cent interest rates the large, state-owned banks pay on demand deposits.<\/p>\n","protected":false},"excerpt":{"rendered":"Households continued to shift money into mainland China\u2019s US$12.7 trillion stock market last month, suggesting that a rally&hellip;\n","protected":false},"author":3,"featured_media":228400,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[738,28031,3638,64,74,104423,123412,104428,123409,79,123413,123411,8464,123408,123410,22702,6043,104426,67,132,68],"class_list":{"0":"post-228399","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-artificial-intelligence","9":"tag-august","10":"tag-bloomberg","11":"tag-business","12":"tag-china","13":"tag-china-stocks","14":"tag-chinese-stocks","15":"tag-csi-300-index","16":"tag-deposits-at-non-banking-financial-institutions","17":"tag-economy","18":"tag-frank-benzimra","19":"tag-guosen-securities","20":"tag-hong-kong","21":"tag-household-savings","22":"tag-m1","23":"tag-peoples-bank-of-china","24":"tag-shanghai","25":"tag-shanghai-composite-index","26":"tag-united-states","27":"tag-unitedstates","28":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115207671859895431","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/228399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=228399"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/228399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/228400"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=228399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=228399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=228399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}