Eliza Wong
Executive Summary
Key takeaways from the first year of the 924 New Policy:
- The 924 reforms triggered a historic bull market, with growth indices like the创业板50 (ChiNext 50) surging over 100%, reversing previous downturns.
- Market liquidity expanded dramatically, with average daily trading volumes doubling and new investor accounts increasing by 83.86%, reflecting restored confidence.
- Institutional capital inflows intensified, including foreign holdings rising by 23.96% and insurance funds increasing equity allocations, stabilizing the market.
- High-quality companies in sectors like AI and semiconductors led value creation, with firms such as宁德时代 (CATL) seeing market cap gains exceeding 100%.
A Watershed Moment for Chinese Equities
September 24, 2024, marked a pivotal turning point for China’s A-share market, as regulatory authorities unleashed a comprehensive policy package aimed at revitalizing the economy. The 924 New Policy, jointly announced by中国人民银行 (People’s Bank of China), 中国证券监督管理委员会 (China Securities Regulatory Commission), and国家金融监督管理总局 (National Financial Regulatory Administration), was designed to foster high-quality development and restore investor confidence. Immediately following the announcement, the上海证券交易所 (Shanghai Stock Exchange) index jumped 4.15%, while the创业板指 (ChiNext Index) soared 5.54%, signaling the start of a new era. This article examines the profound changes witnessed over the past year, highlighting how the 924 reforms have reshaped market dynamics.
The initial euphoria was just the beginning. Over the subsequent months, the A-share market transitioned from a period of uncertainty to a sustained upward trajectory, characterized by increased stability and reduced volatility. By August 18, 2025, the total market capitalization of A-shares surpassed 100 trillion yuan, a historic milestone, while annualized volatility dropped to 15.9%, down 2.8 percentage points from the 13th Five-Year Plan period. This transformation underscores the effectiveness of the 924 New Policy in creating a more resilient market environment.
Market Indexes Rebound and Structural Shifts
The implementation of the 924 New Policy catalyzed a dramatic reversal in index performance, shifting the market from bearish sentiment to a robust bull phase. Prior to the reforms, A-shares faced significant pressure, with international investors often adopting an ABC (Anything But China) approach. However, in the year following September 24, 2024, key indices recorded impressive gains: the创业板50 (ChiNext 50) led with a 116.14% increase, the科创50 (STAR 50) rose 111.91%, and the创业板指 (ChiNext Index) surpassed 100% growth. Even large-cap value indices saw a respectable 17.19% uplift, demonstrating broad-based recovery.
Growth Sectors Take the Lead
Small and mid-cap growth stocks emerged as the standout performers under the 924 New Policy. The小盘成长指数 (Small-Cap Growth Index) advanced 70.86% in the post-reform year, outpacing the大盘成长指数 (Large-Cap Growth Index), which grew 56.54%. Similarly, the中盘成长指数 (Mid-Cap Growth Index) increased by 48.41%. This trend highlights the policy’s success in incentivizing innovation among smaller enterprises, with sectors like artificial intelligence and robotics attracting substantial investor interest. For instance, companies linked to DeepSeek (深度求索) saw heightened activity, fueling rallies in related概念板块 (concept sectors).
Liquidity Surge and Investor Participation
A critical outcome of the 924 New Policy has been the explosion in market liquidity, driven by both retail and institutional engagement. Cumulative trading volume in the year after the reforms reached 405.63 trillion yuan, a 115.22% increase from the previous year’s 188.47 trillion yuan. Average daily turnover rose to 1.68 trillion yuan, up 113.44%, while the peak single-day volume hit 3.47 trillion yuan, surging 155.75%. These figures reflect a market brimming with activity, as the 924 reforms enhanced transparency and reduced barriers to entry.
Record-Breaking Account Openings
Investor enthusiasm reached new heights, with A-share account openings skyrocketing 83.86% to 30.57 million in the post-924 year, compared to 16.63 million previously. October 2024 alone saw 684,680 new accounts, the highest monthly figure in five years, with individual investors dominating at 683,970. This influx not only expanded the investor base but also injected fresh capital, supporting sustained market growth. The data underscores how the 924 New Policy successfully attracted a broader demographic to equities, mitigating previous capital outflows.
Capital Inflows from Domestic and International Sources
The 924 New Policy galvanized both domestic and foreign capital, reinforcing China’s appeal as an investment destination. Southbound capital flows into Hong Kong surged, with cumulative net purchases reaching 1.11 trillion Hong Kong dollars in 2025, up 148% year-over-year. Total transaction volume via the Stock Connect program expanded 244.41% to 26.76 trillion Hong Kong dollars, indicating deepened integration between mainland and Hong Kong markets. This trend aligns with the policy’s goal of promoting cross-border investment opportunities.
Foreign Investment Resurgence
Foreign institutions significantly increased their A-share exposures post-924, with陆股通 (Northbound Stock Connect) turnover growing 82.13% to 49.29 trillion yuan. Holdings by overseas investors climbed to 3.07 trillion yuan by June 2025, a 23.96% rise from August 2024. This renewed confidence is a testament to the 924 New Policy’s role in improving market accessibility and corporate governance. Experts attribute this to clearer regulatory frameworks and stronger economic fundamentals, making A-shares a core component of global portfolios.
Institutional Engagement and Product Innovation
Institutional players, particularly insurance funds, amplified their equity investments under the 924 New Policy. For人身险公司 (life insurance companies), stock allocations grew from 7.55% to 8.81% of total assets, with absolute values rising 31.56% to 2.87 trillion yuan.财产险公司 (property insurers) followed suit, increasing equity investments by 29.82% to 195.5 billion yuan. This shift toward long-term capital deployment has helped dampen market volatility, fulfilling the policy’s objective of fostering stability.
Expansion of Public Funds
The公募基金 (public fund) industry flourished, with total assets under management expanding 10.43% to 34.74 trillion yuan by September 2025. New equity fund launches jumped 79.91% in number and 221.89% in issuance volume post-924, highlighting retail investors’ growing preference for equity exposure. For example, October 2024 saw 51 new stock funds raising 860.72 billion yuan, a three-year high. This growth underscores how the 924 New Policy incentivized product innovation, aligning savings with capital market development.
Corporate Value Creation and Behavioral Shifts
The 924 New Policy environment encouraged listed companies to maximize shareholder value through strategic initiatives. Nearly 40 firms saw market cap increases exceeding 100 billion yuan, with工业富联 (Foxconn Industrial Internet) leading at 260.21% growth. Semiconductors and tech hardware sectors outperformed, as seen with寒武纪-U (Cambricon-U) surging 534.61%. Simultaneously, traditional giants like贵州茅台 (Kweichow Moutai) and工商银行 (ICBC) posted gains above 20%, indicating a balanced market revival.
Enhanced Corporate Treasury Management
Companies increasingly leveraged idle funds for securities investments, with bank理财 (wealth management) purchases rising 1.93% and fund专户 (dedicated accounts) growing 62.65%. Over 75 firms announced plans to engage in market activities post-924, reflecting improved cash flow management and confidence in equity returns. This behavioral shift demonstrates how the 924 New Policy created avenues for corporate participation in market growth, further deepening liquidity.
Looking Ahead: Sustaining the Momentum
The first year of the 924 New Policy has undeniably reset China’s equity landscape, catalyzing broad-based growth and investor optimism. Key achievements include heightened market capitalization, reduced volatility, and robust capital inflows. Moving forward, stakeholders should monitor policy continuity and sector-specific trends, such as advancements in AI and green technology, which are poised to drive future gains. Investors are advised to maintain a diversified approach, leveraging insights from this transformative period to capitalize on emerging opportunities. The 924 reforms have laid a foundation for sustainable development, positioning A-shares for long-term success.
