China’s A-share market saw a significant surge in new investor accounts in June this year, with 1.65 million openings—a 53% increase year-on-year, reflecting growing optimism fueled by a recovering market, stronger trading activity, and policy support.
According to data released by the Shanghai Stock Exchange, in June, individual investors opened 1.638 million A-share accounts, while institutional investors opened 8,400 accounts.
Compared to May’s 1.5556 million new accounts, June’s new account figures rose by 6%, and soared by 53.35% compared to the same period last year.
A sharp increase in new account numbers often indicates a rush of retail investors into the market, showing that ordinary investors’ confidence in the stock market is strengthening.
Industry insiders believe that the 53% year-on-year increase in A-share new accounts in June reflects a recovery in the A-share market and a rise in trading activity. The sustained return of the stock market’s wealth effect has become a major reason behind the enthusiastic participation of new retail investors.
In June, all three major A-share indexes saw significant gains. The Shanghai Composite Index rose by 2.9% for the month and broke through the 3,400-point mark. The Shenzhen Component Index increased by 4.23%, and the ChiNext Index surged by 8.02%. Overall, the A-share market was active in June, with a total trading volume of 26.72 trillion yuan and an average daily trading volume of 1.3 trillion yuan, a 79.57% increase from the same period last year.
A review of A-share new account numbers from January to May this year shows that the market’s wealth effect and ongoing policy support are the main drivers influencing new account openings.
In January, the A-share market started the year with steady new account growth. The 1.57 million new accounts opened in January exceeded those of any of the previous six months. In February, 2.8359 million new accounts were opened, surpassing figures for eleven months of the previous year and second only to the historic peak of 6.84 million in October 2024. The explosive growth in February was mainly due to a short-term surge in the market’s wealth effect, continued policy benefits, and the establishment of a clear technology investment theme.
In March, new account numbers reached 3.0655 million, hitting a five-month high, driven by the continued rise in the A-share market’s wealth effect. In April, after a period of gains, the A-share market experienced a brief pullback, but quickly stabilized thanks to strong market-stabilizing measures. The recovery of the market and restoration of investor confidence helped maintain enthusiasm for opening accounts, with 1.92 million new accounts in April, a 30.6% year-on-year increase. In May, due to the May Day and Dragon Boat Festival holidays, the number of new accounts dropped to 1.5556 million, a 19.17% decrease from the previous month, but still a 22.86% year-on-year increase.
“The number of investors entering the market is closely tied to market conditions,” said a public fund manager. He noted that in June, the Shanghai Composite Index steadily climbed and broke through the 3,400-point mark, suggesting that the A-share market may be entering the second phase of a bull market.
He expects that July will offer more opportunities than risks, but how new account numbers will evolve remains to be seen.
