Individual investors in China's Generation Z (born in the late 1990s to early 2010s) who invest using artificial intelligence (AI) and social media (SNS) information are rapidly increasing, emerging as new leaders of China's stock market. They trust AI-recommended stocks and the collective intelligence of online communities more than traditional analyst reports and are taking aggressive investment actions.
On the 10th (local time), Bloomberg reported that China's Generation Z traders, called "Xiao Dengs (little kids)," are reshaping China's $14 trillion stock market. According to surveys by Ping An Securities and the Hurun Research Institute, the number of investors under 30 in China doubled between September 2024 and January 2025. That is about one-third of all individual investors in China (about 240 million). Local outlet Jiemian also said that more than 45% of new securities accounts opened last year were by investors 35 and under.
Their investing style is highly aggressive. They prefer short-term trading and pour money into high-growth tech stocks fostered by the government, such as AI, semiconductors and renewable energy. Bloomberg said, "The Xiao Dengs' taste for high-growth stocks has fueled the recent tech frenzy, and their rapid short-term trading style has increased market volatility."
In fact, powered by the Xiao Dengs' firepower, the CSI 300 index, a benchmark for China's stock market in 2025, rose 18%, marking the biggest gain since the early phase of the COVID-19 pandemic. Yang Rui, a fund manager at Shanghai Prospect Investment Advisory, said, "Veteran investors fear bear markets, but new investors fear 'FOMO (fear of missing out),'" adding, "This difference in mindset is fundamentally changing the role of China's stock market."
Experts point to changes in China's economic structure as the reason young people are flocking to the stock market. As the real estate market—once a vehicle for wealth accumulation—slumps and low interest rates persist, idle funds have flowed into equities. In particular, despite higher education, young people facing severe job scarcity view stock investing as "a new chance for upward mobility" and are jumping into the market, according to this analysis.