China A-shares surge 36% in two years as electronics overtakes banking as top sector
Two years after China's September 24, 2024 policy stimulus, the A-share market has undergone a structural revaluation. The Shanghai Composite Index rose over 36% from 2,863 to 3,888 points, while the STAR 50 surged 143%. Electronics overtook banking as the largest sector by market capitalization, growing from 6.08 trillion to 24.48 trillion yuan. However, the market has entered a K-shaped divergence in 2026, with nearly 70% of stocks posting negative returns and a median loss of 12.4%. Corporate earnings are beginning to support valuations, with 2026 first-half net profits up 19.5% year-on-year.
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A-Share Market Two Years After '924' Rally: Electronics Overtakes Banks as Top Sector
On the second anniversary of China's '924' policy-driven market rally, the A-share market has undergone a structural revaluation, with the Shanghai Composite Index rising over 36% from 2,863 to 3,888 points. The article analyzes that the rally has shifted from a broad-based policy-driven rebound to a structural revaluation led by technology and manufacturing. A key symbolic change is that the electronics sector has surpassed banking to become the largest industry by total market capitalization, rising from 6.08 trillion yuan to 24.48 trillion yuan. The analysis attributes this to a shift in the market's 'pricing anchor' from traditional finance and consumption to technology. The article notes that while index gains are significant, the market has entered a 'K-shaped' structure in 2026, with nearly 70% of stocks posting negative returns. It identifies three sources of incremental funds: long-term institutional capital (insurance, pensions), passive ETF flows (total ETF assets nearing 5 trillion yuan), and leveraged margin trading (margin balance nearly doubling to 2.66 trillion yuan). The article argues that the rally is now being supported by improving corporate earnings, particularly in the tech sector, with 2026 first-half net profits up 19.5% year-on-year, suggesting the market is transitioning from valuation expansion to earnings-driven growth. It concludes that the two-year mark is not an endpoint but the beginning of a verification phase for earnings sustainability.
Read sourceTwo Years After '924' Rally: A-Share Market Cap King Changes, Pricing Anchor Shifts to Tech
On the two-year anniversary of China's '924' policy stimulus package, the A-share market has undergone a profound structural transformation. The Shanghai Composite Index has risen over 36% from 2,863 to 3,888 points, while the ChiNext and STAR 50 indices have surged 104% and 143% respectively. The most symbolic change is that the electronics sector has overtaken banking to become the largest industry by market capitalization, signaling a shift in the market's pricing anchor from traditional finance and consumption to technology. The article analyzes that this is not merely a liquidity-driven bull market but a structural revaluation supported by improving corporate earnings, particularly in the tech sector. It identifies three sources of incremental funds: long-term institutional capital (insurance, pensions), passive ETF inflows, and leveraged margin trading. However, the market has entered a 'K-shaped' structure in 2026, with nearly 70% of stocks posting negative returns despite index gains. The report concludes that while policy and liquidity set the initial conditions, the sustainability of the rally now depends on earnings growth, which is beginning to materialize for core tech assets.
Read sourceTwo Years After '924' Rally: A-share Market Cap King Changes, Pricing Anchor Shifts to Tech
On the second anniversary of China's '924' policy-driven market rally, the A-share market has undergone a structural revaluation, with the Shanghai Composite Index rising over 36% from 2863 to 3888 points. The article analyzes that the rally is not a simple liquidity-driven bull market but a structural revaluation led by technology and manufacturing sectors. Key changes include the electronic sector surpassing banking to become the largest industry by market capitalization, with its total value surging over 302% to 24.48 trillion yuan. Incremental funds came from three sources: long-term institutional funds (insurance, pensions), passive index funds (ETFs), and leveraged margin trading. The article notes that while the market has expanded significantly, the rally is now entering a phase where earnings growth must support valuations, citing strong 2026 first-half earnings growth of 19.5% for listed companies, particularly in the tech sector. The analysis concludes that the '924' rally's sustainability depends on continued earnings delivery rather than just policy and liquidity.
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A-share Market Two Years After '924' Rally: Electronics Overtakes Banks as Top Sector
This analysis from Hexun, published on the second anniversary of China's '924' policy stimulus, reviews the A-share market's transformation from September 2024 to September 2026. The Shanghai Composite Index rose over 36% from 2,863 to 3,888 points, while the ChiNext and STAR 50 indices surged 104% and 143% respectively. The article argues the rally is not a simple liquidity-driven bull market but a structural revaluation, evidenced by electronics replacing banking as the largest sector by market capitalization, growing from 6.08 trillion to 24.48 trillion yuan. It identifies three sources of incremental funds: long-term institutional capital (insurance, pensions), passive ETF inflows (total ETF assets nearing 5 trillion yuan), and leveraged margin trading (margin balance nearly doubling to 2.66 trillion yuan). The analysis notes that by 2026, the market has entered a 'K-shaped' divergence, with nearly 70% of stocks posting negative returns year-to-date. Crucially, it highlights that corporate earnings are beginning to support valuations, with 2026 first-half net profits up 19.5% year-on-year, particularly in the tech sector, suggesting the rally may be transitioning from valuation expansion to earnings-driven growth.
Read sourceA-Share Market Cap Surges 45 Trillion Yuan in Two Years Since Policy-Driven Rally, but Median Stock Falls 12% in 2026
This article from Stockstar Industry, citing Times Finance, analyzes the two-year anniversary of China's '9·24' policy-driven stock market rally. Since September 24, 2024, the A-share total market capitalization has surged by approximately 45 trillion yuan to 115.59 trillion yuan, with the Shanghai Composite Index up 41.45% and the ChiNext Index up 114.89%. However, the median stock return in 2026 is -12.4%, highlighting a sharp divergence between index gains and individual stock performance. The rally is divided into three phases: policy-driven valuation recovery (late 2024 to 2025), a tech-led earnings rally (first half of 2026), and a current period of low-volume consolidation since July 2026. The electronics sector has overtaken banking as the largest industry by market cap. The article includes forecasts from Qianhai Open Source Fund's Yang Delong, who expects a Q4 rebound driven by AI and semiconductor stocks, and from Zhejiang Securities, which sees a 'systemic slow bull' market with sector rotation amid high overseas interest rates.