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Throughout most of this year, the market has been discussing the "asset shortage," which refers to the scarcity of high-yield assets after the decline in interest rates.

With the rapid rise in the stock market in this round, how much of the household sector's assets will be allocated to the stock market?

According to statistics from Morgan Stanley, by the end of 2023, the allocation of Chinese households to stocks will be approximately 7.6%. However, considering the appreciation of stocks from the beginning of the year to now, this ratio may have already risen to 8.4%. The historical peak of Chinese households' allocation to stocks has reached about 10%, or even slightly higher.

For every 100 basis points increase in the stock allocation ratio, it means that approximately 530 billion RMB of net funds will flow into the market, equivalent to 6% of the total market value of A-shares, or 5% of the total market value of Chinese stocks including H-shares and Chinese concept stocks listed in the United States. This is a significant figure.