In its Unit A strategy report, released on 22 July, the Bank stated that the recent reversal of the technology block in Unit A had been largely influenced by global technological stock fluctuations, short-term gains and increased trade congestion. According to the Bank, while the short-term pressure on the market is evident, the overall trend towards improved profitability has not changed.
The profit is expected to continue.
The Bank expects that the total A share will increase from 3.9 per cent in 2025 to 11 per cent in 2026. The disclosed quarterly report for 2026 shows that net profits from non-financial A shares increased by 11.8 per cent over the same period, compared with 0.8 per cent for the whole of 2025.
It is expected that the profits of the technology plate will increase even more significantly. The market is a consistent expectation of a growth in profits in 2026, with an increase of 33 percentage points at the beginning of the year and an increase of 112 percentage points in the 50-cent budget. According to the Bank, the global AI is still at a rapid stage of development and the trend of related profit improvement continues.
Continued ETF inflow
There was no one-way withdrawal of funds during the market downturn. From 6 to 20 July, the Bank's data show that the total A equity category ETF net inflows totalled more than RMB 36.74 billion, and that the single-day turnover of many kwanky ETFs was significantly amplified.
Unlike the previous round of inflows, this was more widely distributed. Large net inflows were recorded in 300 ETFs, ETFs and 50 ETFs. On the evening of 19 July, China and the new Chinese government each said that they appreciated China ' s capital market and would increase their A share, and that many insurance companies would maintain market stability.
Flowback of financing balances
According to the Bank, the most worrying leverage risk in the market is being mitigated. As at 20 July, the total A share financing balance stood at 2.7 trillion yuan, a decrease of 31.24 billion yuan from the peak of 301 trillion yuan achieved on 25 June.
In the segment, the balance of financing for the large technology blocks fell from $1.1 trillion on 26 June to $94.49 billion, a decrease of $152.7 billion. According to the Bank, the balance of financing for large technology, entrepreneurship and science and technology is not significantly above the market value of the market as a whole, at 5.8 per cent, and is still at a reasonable historical level.