The triple logic behind the total market value of A-shares at 120 trillion yuan

According to data from the official websites of the Shanghai, Shenzhen, and Beijing stock exchanges, as of the close on May 8th, the total market capitalization of A-shares reached 120.15 trillion yuan. I believe that behind the achievement of a total market cap of 120 trillion yuan, there are three core logical shifts. The A-share market landscape is accelerating its restructuring from traditional cyclical stocks to technology growth stocks. Under the transformation of old and new driving forces, emerging industries are rising strongly, and globally competitive technology supply chains have become the long-term foundation for stable market value.

The A-share market landscape is undergoing profound restructuring. Data from Wind Information shows that by the close on May 8th, since the beginning of the year, A-share market capitalization has increased by 12.24 trillion yuan, with the electronics sector alone contributing about 4.73 trillion yuan of new market value, accounting for roughly 40%. When including sectors like electrical equipment and communications, emerging industries have contributed nearly all of the incremental growth.

In the past, the “trillion-yuan market cap club” led by finance and energy is now being rapidly reshaped by emerging industries represented by technology. The new high of 120 trillion yuan in total market value is not driven by traditional infrastructure or real estate industries, but by the revaluation of new productive forces in the capital market.

On one hand, the growth in AI computing power demand has driven the market value increase of listed companies along the industry chain. For example, the AI server leader Industrial Fulian (601138) has surpassed one trillion yuan in market value; the optical module leader Zhongji Xuchuang (300308) is approaching one trillion yuan. This reflects the explosive global demand for computing power and China’s manufacturing advantage in AI hardware. On the other hand, the rise of new energy and high-end manufacturing is also significant. Leading companies like CATL (300750) and BYD (002594) have established dominance in power batteries and electric vehicles through their global market shares; high-end equipment and semiconductor equipment companies are benefiting from accelerated domestic substitution.

China has built a technology industry chain with global competitiveness. Taking the AI computing power industry chain as an example, industries such as AI servers, optical modules, storage chips, and semiconductor equipment have formed a complete chain from hardware to underlying devices. This chain resonates with global tech cycles while leveraging internal supporting advantages to build stronger market resilience. Meanwhile, industries like artificial intelligence, quantum computing, and commercial aerospace are expected to spawn a new wave of market value growth poles. The “tech weighting” of A-shares will continue to increase.

The achievement of a total market cap of 120 trillion yuan is both a milestone and a new starting point for China’s capital market from scale expansion to quality improvement. In the future, the rise in A-share market value will not be a single-point breakthrough in tech assets but a comprehensive, structural, and systemic leap. The growth structure of A-shares’ market value is expected to form a resonant pattern of “technology-led, multi-cycle driving.”

(Edited by: Zhang Yan)

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