Li Xunlei: What is the driving force behind the stock market's rise?

On September 17th, the "2025 China Capital Market Development Forum and Securities Industry Forum" hosted by China Fund News was held in Shanghai. Li Xunlei, Chief Economist of Zhongtai Securities, stated that the recent rise in the stock market is mainly driven by fund inflows increasing valuation, which is supported by declining interest rates. Initially, incremental funds entering the market were led by central Huijin and insurance assets, followed later by individual investors. Although the market has risen over 1000 points from its lows, the current valuation of the overall market index is still considered reasonable without any signs of a bubble. Li pointed out that the current market has abundant liquidity, with the margin financing balance in A-shares exceeding the highest level in 2015. However, the proportion of margin financing balance to the total market value is significantly lower than in 2015, and there is no excessive off-market margin financing as before. The major indicators representing the direction of A-shares are the Shanghai Composite Index and the CSI 300 Index, which still remain in a reasonable valuation range in terms of P/E ratio and dividend yield.