Xun Yugeng: The Ongoing Bull Market Enters Its Advanced Phase with Tech Shifting From Infrastructure to Applications

According to a research report from Guosen Securities released in early 2026, Chief Economist Xun Yugeng articulated a compelling thesis about the current bull market trajectory. The bull market that commenced on September 24, 2024, draws notable parallels with the 1999 bull market that began in May—both periods characterized by sustained economic deflation and persistently supportive policy frameworks that remain fundamentally unchanged.

The Bull Market Cycle Remains Far From Completion

Xun's analysis suggests the current bull market has yet to reach both temporal and spatial exhaustion. By drawing comparisons with historical market cycles, the economist argues that investor sentiment has not peaked, signaling room for continued appreciation. The market environment remains conducive to sustained gains, with the underlying policy support structure intact and unlikely to reverse in the near term.

Fundamentals Recovery to Spark Broader Market Participation

The bull market is transitioning from its second stage into its third phase, characterized by a shift from isolated strength to more pervasive market recovery. Rather than gains remaining concentrated in select areas, fundamental improvement will radiate outward across a wider array of assets. This phase is expected to coincide with a significant influx of household capital into equity markets, creating the conditions for a more sustained and comprehensive bull market expansion.

Technology Rally Expands: From Infrastructure to Applications Layer

A pivotal transformation is underway within the technology sector. The current rally, which has been primarily driven by computing power infrastructure buildout, is anticipated to evolve toward application-layer expansion. This represents a natural progression as foundational capacity matures and focus shifts to practical implementation and adoption. Beyond technology, traditionally resilient assets such as consumer staples and real estate may experience valuation reassessments and renewed investor interest during this bull market phase.

Xun's framework provides investors with a roadmap for navigating the market's evolution—suggesting that rather than nearing exhaustion, the bull market is entering a more mature and diversified stage of expansion.