Analysts: China's 'slow bull' market likely to continue in 2026

Amid the combined effects of sustained policy support, a mild economic recovery, ample liquidity, and a relatively favorable external environment, the "slow bull" market that began in 2025 is expected to continue into 2026, analysts said.

During an investment strategy conference held on Wednesday, Shen Aiqian, director of equity investments at Ping An Fund Management Co, advised investors to focus on structural opportunities in areas such as technological innovation and cyclical sectors.

Analysts at AVIC Securities said the current economic transformation driven bull market is a "slow bull". Compared with previous years, the spring rally in China's A-share market may see a more stable rise in its central trading range and could last longer. The market may currently be at the early stage of the first half of the spring rally. Any subsequent adjustments in the A-share market should be approached more proactively, they said.

The effectiveness of China's economic fundamentals in supporting stable growth still requires further confirmation. Against the backdrop of a slow bull market, the spring rally may take the form of a volatile upward movement, suggesting that investment strategies should not be overly aggressive. After new catalysts emerge, the central level of the A-share market is expected to reach new highs and usher in a new round of gains, AVIC Securities said.

Lin Yang, an analyst at Dongxing Securities, also said the A-share market will still be characterized by a slow bull trend in 2026. As economic fundamentals gradually recover, the market is likely to shift from valuation-driven gains to earnings-driven gains, providing sustained upward momentum for valuations.

From an investment strategy perspective, Lin said investors should view the market through the lens of a medium- to long-term bull cycle — rather than being overly concerned with short-term adjustments and volatility — and should actively seize opportunities based on two key stock-selection themes: economic momentum and industrial development.

Dongxing Securities said that the broad technology sector will continue to offer substantial opportunities in 2026, and recommends focusing on artificial intelligence and its applications, commercial spaceflight, controlled nuclear fusion, and autonomous driving.