Chen Xing said domestic substitution has entered a new stage—coordinated R&D and
application rollout with large-scale validation under top-level planning—which
underpins a clear mid-to-long-term structural theme for China’s A-share market.
He said China’s manufacturing system is the most complete globally and domestically
substitution is a long-term industrial-upgrade dividend through the 15th
Five-Year period, likely to sustain earnings upside for hard-tech growth names
and lift related A-share sectors. He added that investment-and-financing reform
is moving from design to delivery: on the investment side, various long-term
funds markedly stepped up market entry in 2025, with net new inflows exceeding 1
tln yuan; since 2026, social security, pension and insurance funds have net
bought over 600 bln yuan of A-shares and increased their A-share
tradable-market-value by about 12.5% versus end-2025. On the financing side,
average IPO review times in Shanghai and Shenzhen have shortened to around six
months this year, and some quality companies complete refinancing reviews in
under one month, reflecting greater institutional tolerance and adaptability.
