China’s onshore equity market is witnessing remarkable resilience, with investor sentiment showing strong momentum. Bloomberg recently reported that the National People’s Congress (NPC) meeting has been scheduled for November 4-8, a slight shift from the usual end-of-October timeframe. This change was largely anticipated by market participants, as many speculated that the Chinese government would prefer to wait until after the U.S. election to solidify any economic decisions or policy adjustments.

Despite global economic uncertainties, domestic investor confidence in Chinese equities remains high. Notably, CSI A500 ETF feeder funds are seeing significant demand from retail investors. An ETF feeder fund distributed through China Merchants Bank (560510 CH) received a striking RMB2 billion in subscriptions within just the first 30 minutes of its launch on Friday. This highlights how Chinese retail investors, leveraging bank channels, are seizing opportunities in the onshore equity market.

Adding to the positive sentiment, market turnover in China has remained exceptionally active, surpassing RMB1 trillion for 18 consecutive days. Such sustained trading volume reflects the robust liquidity and confidence among domestic investors, both of which are crucial for market stability and growth.

In addition, the UBS cash equities desk reports that market sentiment is balanced, with buying and selling activity split evenly at 50/50. This even distribution suggests that while some investors are locking in profits, others are optimistic about the market’s growth potential.

With strong retail participation, high turnover, and balanced trading activity, China’s onshore equity market seems poised for resilience. This positive investor sentiment could signal continued growth, driven by both market liquidity and a steady stream of domestic demand. As we approach the NPC meeting, many are watching for potential policy updates that could further influence China’s equity markets in the months ahead.