Nomura Rote: Policy support for the bull market, moderate "cooling" measures are necessary

Since the beginning of 2026, the A-share market has continued its upward trend, with the Shanghai Composite Index breaking through important psychological resistance levels one after another. How to view this round of market trends, and how is this "slow bull" different from the past? "In the past year and a half, the most successful measure in our economic policy is to make the stock market active, with the stock prices of most companies rising," said Lu Ting, chief economist at Nomura China, at a recent media event. Lu Ting believes that, unlike the "crazy bull" in 2015, the measures in this round of market trends reflect a careful handling of the bull market. This care is reflected in two aspects: to prevent the market from becoming "crazy bull" and to prevent market crashes. Recently, there have been some signs of cooling in the market: the three major exchanges collectively raised the margin level for margin trading, a move seen as cooling down the margin trading market; on the market front, A-shares have seen a decrease in trading volume and fluctuation, with some previously hot concept stocks declining. "Is it necessary for the market to cool down? I think it is necessary," Lu Ting said, emphasizing the importance of preventing the market from showing signs of overheating and ensuring that the stock market is not deviating from the economic fundamentals.