BEIJING, Sept. 23, 2025 /PRNewswire/ — China’s investor confidence strengthened in Q3 2025, according to the latest Cheung Kong Graduate School of Business (CKGSB) Investor Sentiment Survey (CKISS). The findings show that A-shares rebounded strongly on policy support and advances by Chinese technology firms, though corporate fundamentals and real estate remained weak.
From August 2024 to August 2025, the Shanghai Composite Index rose 35.7% year-on-year, while the Shenzhen Composite Index surged 58.2%. Investor sentiment followed: 63.1% of respondents in September expected A-shares to rise, up 15.6 percentage points from July 2024. The expected rate of return on A-shares reached 1.6%, one percentage point higher than April 2025.
Professor Liu Jing , Professor of Accounting and Finance at CKGSB and author of this survey, found the current round of A-share gains has been driven mainly by valuation expansion rather than by improvements in listed companies’ fundamentals. “The year-long rise in A-shares indicates that at least part of investor confidence has recovered,” said Professor Liu.
Three factors drove the valuation recovery. Policy support included two reserve requirement ratio cuts since late 2024, releasing about RMB 2 trillion, while open market operations injected RMB 1.6 trillion in the first eight months of 2025. Technology breakthroughs fueled A-share sector gains of above 60% year-on-year in semiconductors, automation, and industrial metals. Trade resilience also played a role, as China reduced its reliance on the US, with exports to the US falling to 11.8% by July 2025, down from 19.3% in 2018.
Yet fundamentals remain weak. Non-financial listed companies saw sluggish revenue and profit growth, while real estate prices continued to fall. In September 2025, only 46.3% of respondents expected housing prices to rise, down 6.2 percentage points from the prior edition of the survey. “A sustained bull market requires strong fundamentals. Structural rebalancing from investment to consumption, technological innovation, industrial upgrading, and vigorous private-sector activity are all critical to strengthening fundamentals,” stated Professor Liu.
The survey also reiterates CKGSB’s view on gold. “Seven years ago, we recommended gold as an important investment asset,” noted Professor Liu. “The trend toward a multipolar world has only accelerated, and gold remains ballast in the global financial system.”
The Q3 2025 CKISS signals both optimism and caution: investor confidence is rebounding, but sustainable growth will require deeper structural reforms.
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