But retail investors are haunted by the regulatory purges, volatility and losses since 2021. With 212 million retail investors, equal to Brazil's population, the conservatism of China's retail army has implications for the viability of the rally. Individual retail investor transactions accounted for about 60% of the total A-shares turnover in late 2022, China Securities Regulatory Commission Chairman Yi Huiman said in November. But data shows barely any investor accounts being opened and the margin financing that retail investors typically use has plateaued. Retail investors are waiting for clearer policy signals, said Lei Meng, China equities strategist at UBS Securities.

---