At 10:34 AM on August 18, a single number swept through the entire investment circle—A-share total market capitalization surpassed 100 trillion yuan.

At market close, it stood at 100.19 trillion, an increase of 14.33 trillion since the beginning of the year. The Shanghai Composite Index touched 3,745 points intraday, the highest since August 2015—a full decade. The Shenzhen Component Index and the ChiNext both advanced in tandem, with the Beijing 50 Index surging 4%, half-day turnover hitting 1.75 trillion, and nearly 4,500 stocks closing in the green. This isn’t just a numbers game; behind it lies deep changes in China’s capital market and economic structure.

# Who’s Holding Up This 100 Trillion?

Breaking it down, the industrial, information technology, financial, and materials sectors together account for more than 60%. But the real standout is tech stocks—since August, the information technology sector’s market cap has risen 11.55%, with semiconductor, AI, and software companies taking center stage.

The most explosive news: the electronics industry’s total market cap surpassed 11.54 trillion, overtaking banking for the first time to lead all sectors. What does this mean? China’s economic engine is shifting from traditional finance to technological innovation, and it’s a real, tangible shift—not just a slogan.

Old giants like Industrial and Commercial Bank of China and Agricultural Bank of China are still rock solid, but new forces like CATL and SMIC are generating tremendous momentum. Tradition and innovation aren’t at odds—they each play their roles in the same ecosystem.

# Why Break 100 Trillion Now?

Three forces converged.

**Policy:** The registration-based IPO system is now fully implemented, delisting has become routine, and boards like the STAR Market and Beijing Stock Exchange have greenlit innovation-driven companies. Add to this market-stabilizing policies and “dual circulation” domestic demand stimulus—policy dividends continue to be unleashed.

**Capital:** Liquidity is abundant. Household money is moving from deposits and real estate into the stock market—this trend is increasingly evident. Foreign capital is also accelerating its entry. In July, global long-only funds poured $2.7 billion into Chinese stocks, and northbound trading turnover crossed 300 billion for the first time this year.

**Fundamentals:** As economist Pan Helin put it bluntly, this rally is essentially the concentrated realization of China’s technological innovation achievements. Breakthroughs in AI foundation models and innovative pharmaceuticals have prompted global capital to reprice Chinese assets, creating a resonance between domestic and foreign funds.

# What Does This 100 Trillion Mean?

It’s more than just a pretty number.

For the market, confidence is up, making it easier for listed companies to raise capital, and the real economy can access more funding. Once the wealth effect spreads, consumption and investment will form a positive feedback loop.

For the economy, rising market capitalization reflects structural optimization and the rise of new productive forces. The capital market plays an increasingly significant role in resource allocation.

For international standing, 100 trillion yuan is about $13.8 trillion, far surpassing Japan and the UK—A-shares are now a global market force to be reckoned with. The appeal of RMB assets continues to grow. Plus, the CSI 300’s dynamic P/E ratio is only 14x—valuations are reasonable, not a bubble.

# What’s Next?

There are both opportunities and risks.

On the positive side: The 15th Five-Year Plan is coming up, and a global rate-cutting cycle is on the horizon—both are catalysts. But the midyear earnings season may bring volatility and intensified sector rotation—not every stock will rise.

**Investment strategies:**
- Aggressive investors can focus on high-dividend stocks and AI infrastructure supported by policy;
- Conservative players can use dollar-cost averaging or phased entry to capture undervalued targets;
- Long-term investors should stick to asset allocation and double down on high-quality core assets.

Regulators have also stated: They will continue to promote high-quality development of the capital market, enabling brokers, institutions, and retail investors to profit together.

# Final Thoughts

A-shares breaking 100 trillion is both the answer sheet for a decade of reform and the starting line for the next ten years.

Market systems are improving, industrial structures are upgrading, and capital ecology is diversifying. A-shares will play an even greater role in serving the real economy, driving technology, and optimizing wealth allocation, offering investors a bigger stage to share in the dividends of China’s economic growth.

Opportunities and challenges always coexist. Stick to value investing and rational allocation to go further in this marathon.