A-share market added 1.56 million new accounts. The number of accounts opened in the first month of 2025 exceeded the total of the previous 6 months. The new account drive is in full swing.

The latest data released by the Shanghai Stock Exchange in January 2025 shows the number of new A-share stock accounts opened. The data shows that in January 2025, 1.563888 million new A-share accounts were opened by individual investors, while institutional investors opened 0.6097 million accounts. Although the numbers have dropped from the highs seen in some months of 2024, this data still indicates a stable trend in the market at the beginning of the new year. How to interpret the 1.56 million new account data? In 2024, there were 6 months with new account openings above 1.5 million. Taking into account the Chinese New Year factor, it is evident that market sentiment at the beginning of 2025 is relatively enthusiastic. The lowest new account opening number in 2024 was in August, with only 990,000 new accounts opened, while other months with fewer than 1.5 million new accounts were February (1.29 million), April (1.47 million), May (1.26 million), June (1.07 million), and July (1.15 million). Looking ahead to the whole year of 2025, the trend for new A-share account openings will be influenced by multiple factors such as policy dividends, technology investment trends, and the optimization of capital structure with long-term funds entering the market. The influx of young investors and the long-term positioning of institutional funds will shape a more dynamic market landscape. Stable start for new A-share account openings in January 2025 According to the "Stock Account New Account Status Table" disclosed by the Shanghai Stock Exchange, the number of new individual A-share accounts in the market in January 2025 decreased by about 21% compared to December 2024, to 1.98091 million. This is also a 19.74% decrease from the same period in the previous year. One important factor is that the Chinese New Year holiday fell in January in 2025. The Chinese New Year holiday is an important influencing factor, as seen by the relatively low 1.291945 million new account openings in February of the previous year. For institutional investors, the number of new accounts opened was 0.6097 million in January, a decrease from 0.8194 million in December 2024, but still within a reasonable range compared to the average of 0.6457 million for the whole of 2024 (with a total of 7.7488 million institutional A-share accounts opened throughout the year). It is worth noting that the number of new accounts in the B-share market continued to shrink further. In January 2025, only 0.039 million new individual B-share accounts were opened, and institutional B-share accounts opened were 0.0017 million, continuing the trend of insufficient liquidity in the B-share market and a shift in investor interest. Trends for new A-share account openings in 2025 will be influenced by multiple factors The stable start for new account openings at the beginning of 2025 sets a foundation for the market's development throughout the year. Looking ahead, the trend for new A-share account openings will be influenced by multiple factors such as policy continuity, technology investment trends, and the optimization of capital structure. On one hand, policy dividends will continue to be released, boosting market confidence. The China Securities Regulatory Commission's key focus for 2025 includes deepening investment and financing reforms and supporting technological innovation, coupled with an expanded entry of personal pension funds into the market, with an expected increase in long-term funds. Additionally, with more foreign brokerage firms accelerating their presence in the market (such as Goldman Sachs and Castle Securities applying for licenses), the influx of foreign capital working alongside domestic funds will further attract institutional and individual investors to participate. On the other hand, the technology trend and the demand from younger investors will resonate. Data shows that the "Z-generation" investors with a high-risk preference have doubled their proportion. Their preference for ETFs, quantitative products, and other tools are driving the increase in passive investment. Policies oriented towards "new productive forces" (such as AI and Siasun Robot & Automation) might become the new engine for new account growth in 2025. At the same time, the supply and demand of A-share funds will continue to optimize. It is expected that the scale of incremental funds from insurance companies will reach the billion-dollar level in 2025, with ETFs continuing to be a major source for incremental funding and providing a low-threshold entry channel for retail investors. Moreover, new regulations on reducing shareholding will suppress major shareholder sell-offs, with unlock volumes operating at low levels to enhance market stability, which will be beneficial in attracting medium and long-term investors. Currently, the A-share market is undergoing a profound transformation from scale expansion to high-quality development. The steady growth of new account data is not only a reflection of market vitality but also an expression of investors' confidence in the long-term prospects of the Chinese economy. In the future, with the multiple boosters of policy dividends, technological innovation, and accelerated internationalization, A-shares are expected to become an important destination for global capital allocation, creating sustainable value returns for investors. Recap: Policy catalyzing the account opening frenzy in 2024 Looking back at 2024, the new account data for A-shares showed a clear "wave-like" pattern. Throughout the year, the cumulative number of new A-share accounts opened by individual investors reached 24.92144 million, with institutional accounts totaling 0.77488 million. In October 2024, the number of new individual accounts skyrocketed to 6.839747 million, far exceeding the total for the previous five months, making it the highlight of the year. In September 2024, a combination of policy measures was implemented, directly leading to a surge in new account openings in October to 6.839747 million, exceeding the total for the previous five months. Policy dividends combined with stock market profit effects attracted a large number of new investors to enter the market, with brokerage firms working overtime to handle the "account opening frenzy." Looking at the structure of new accounts, in 2024, the "post-85" and "post-90" generations accounted for over 60% of new account openings, with participation from the "post-00" generation rapidly increasing. The proportion of investors under 30 years old increased from 15% before the policies to 30%. Online account opening channels (such as integration with Alipay) became important drivers, highlighting the preference of younger groups for convenient services. In 2024, new account openings showed diversification in terms of account opening channels, age groups, deposit amounts, investment types, and investment directions. Investors from different age groups entered the market through diverse account opening channels, each with their own investment styles and preferences. While showing a certain degree of caution in deposits and investment directions, there were also positive responses to market hotspots and policy orientations. This article is reproduced from "Cailianshe". Editor: Liu Jiayin.