Recently, the A-share market has continued to gain momentum. According to AMCAP Group on August 22, the three major A-share indices trended upward. By midday, the Shanghai Composite Index rose 0.67% to 3,796.36 points; the Shenzhen Component Index climbed 1.32% to 12,076.85 points; and the ChiNext Index surged 2.56% to 2,661.97 points (source: Wind).
With profitability improving and sentiment warming up, many investors are now considering whether it is time to lock in gains.
As the market moves into a slow bull phase, how should index investments be allocated? Today, we invite a financial researcher from AMCAP Group to break down the market logic from three key angles—macroeconomics, industry trends, and capital flows—and to share insights on future index investment strategies.
Macro Policy Support:
• Policies such as trade-in programs, fertility subsidies, special bond issuance, and potential interest rate cuts are providing a supportive backdrop.
Industry Trend Resonance:
• High growth in technology sectors like AI, robotics, and innovative pharmaceuticals.
Active Funding Environment:
• Continuous inflow of ETF funds, increasing margin trading balances, and heightened expectations for foreign capital accumulation.
AMCAP Group’s financial researcher believes that, supported by policy measures, expectations of liquidity easing, and ongoing upgrades and innovations across industries, the A-share market is likely to enter a more resilient and sustainable slow bull phase.
The researcher explained:
“Structurally, the upgrading of technology industries centered around ‘New Quality Productive Forces’—such as AI, robotics, and high-end manufacturing—together with the transformation of traditional sectors like steel, chemicals, and coal under deep policy reforms, will collectively drive a revaluation of China’s asset value system, leading to a comprehensive reassessment of Chinese assets.”
Looking ahead, index investments may focus on three key directions: technology growth, large finance, and cyclical recovery.
The researcher further emphasized:
“A slow bull market is not a rapid surge, but a resilient, steady rise driven by the combined forces of policies, industries, and capital. In this phase, index investing is not only a low-cost and transparent financial tool but also an essential way to share in the dividends of China’s asset revaluation. Allocation strategies may include wide-based foundations, sector enhancements, and thematic offensives—capturing growth opportunities from ‘New Quality Productive Forces,’ while balancing the certainties in finance and cyclical recovery to steadily seek progress in a slow bull environment.”
Disclaimer: The opinions expressed in this article are for reference only and do not constitute investment advice. Investing involves risks; please proceed with caution.
Summary
AMCAP Group notes that A-shares are showing strong momentum, with all major indices rising on August 22. Backed by supportive policies such as subsidies, bond issuance, and possible rate cuts, the market is entering a “slow bull” phase. Industry growth in artificial intelligence , robotics, and innovative pharmaceuticals, combined with ETF inflows and rising foreign capital interest, are driving optimism.
AMCAP’s researcher highlights that both high-tech upgrades and traditional sector reforms will boost China’s asset revaluation. For investors, index strategies may focus on technology growth, large finance, and cyclical recovery, balancing broad-based foundations with thematic opportunities. (Disclaimer: For reference only; investing carries risks.)
Source: AMCAP Dissects Market Logic Amid Industry Trend Resonance
