March 3, 2026 (InvestinChina.asia) – China’s A-share market continued to attract fresh capital in February, as the daily pace of new retail account openings hit its highest level in over a year, underscoring sustained investor interest despite a shorter trading month.
Data released by the Shanghai Stock Exchange shows 2.52 million new investor accounts were opened in February. While the headline figure was down 11% year-on-year and 49% month-on-month, analysts attributed the decline almost entirely to the Chinese New Year holiday, which saw markets close for six trading days, leaving only 14 trading sessions in the month.
A Deceptively Strong Signal
A closer look at daily data reveals underlying strength. The average daily new account openings in February reached 180,000, surpassing the daily average for every single month in 2025. This indicates that on the days markets were open, the rate of new investor entry was more robust than at any point last year.
“The holiday effect is the dominant factor explaining the monthly drop,” an analyst at a major domestic brokerage noted. “Investors tend to delay opening accounts and deploying capital before a long break.”
Market Backdrop: A Resilient Trend
The sustained inflow of new accounts occurred amid a resilient market performance. The Shanghai Composite Index rose 1.09% for the month, marking its third consecutive monthly gain. Trading activity remained elevated, with average daily turnover exceeding 1.8 trillion yuan.
March Outlook: Policy Over Geopolitics
Looking ahead, major Chinese securities firms are largely aligned in their view: while global geopolitical tensions may cause short-term volatility, domestic policy will be the primary market driver.
Analysts from CITIC Securities and BOC International (China) Ltd. argue that external shocks are likely to remain short-lived sentiment dampeners for A-shares. The market is expected to quickly refocus on domestic fundamentals.
The upcoming “Two Sessions” in March are seen as the month’s core catalyst. As the first policy window for China’s 15th Five-Year Plan (2026-2030), the meetings are expected to provide sustained direction for sectors aligned with national strategies like technological self-reliance.
Investment Themes for March
Brokerages are coalescing around three main investment lines for the near term:
- Geopolitical & Supply-Driven: Sectors like oil & petrochemicals and precious metals.
- Policy-Driven: Defense, advanced manufacturing, and technology.
- Earnings Recovery: Cyclical sectors showing pricing power and margin improvement.
The message from the sell-side is one of calibrated optimism: expect near-term consolidation, but maintain confidence in the medium-term uptrend, driven by policy tailwinds and continued retail participation.
Leave a Reply