Analysis: China retail investors from Gen-Z to retirees sit out stock rally

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Analysis: China retail investors from Gen-Z to retirees sit out stock rally
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Retail investors have a case of deep pockets and heavy hands as they are skipping out on the sharp rally in stocks since COVID protocols were lifted, despite being flush with savings during the pandemic years.

Winnie Wu, China equity strategist at BofA Securities, says there is scope for further gains in stocks but if the investor caution persists, "in the bear case scenario, the market might be volatile".

Li, an investor in his 40s, says "I don't have any plans to invest in the stock market for now. Money could go in, but may never come out." "We expect the growth recovery to lose some momentum in the second half of this year," said Ting Lu, chief China economist at Nomura.

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