An interesting phenomenon is happening. Market trading volume is hitting record highs, and funds are seeking new destinations on a large scale.

In simple terms, the root of the problem is one thing: there is too much money. With residents holding 163 trillion yuan in savings and an additional 50 trillion yuan in fixed deposits maturing by 2025, the owners of these funds are starting to get restless in the face of 1%-1.5% interest rates.

I've been explaining this logic for over two years. As early as the end of 2023, when the market was still sluggish with a daily turnover of only 400 billion, the problem was already evident—this is not an era of lack of money, but an era where too much money cannot find a place to go.

After trying for so long, the funds finally understand. Buying houses doesn't work, fixed deposits don't work, entrepreneurship is too risky, and exchanging for dollars is also restricted. So what else can they do? Only one option is left in front of them.

Interestingly, over 90% of the funds in the market are actually still on the sidelines, not moving at all. But think about it—if just 10% of that capital actually starts to move, it would mean a new influx of trillions of yuan. What kind of impact would such a volume have on the market?

Since most people lack patience, there will definitely be a wave of quick operations chasing high returns in the short term. But in the long run, the real drivers of sustained growth will be those relatively risk-controlled allocations that won't trap investors. That is ultimately where the funds will flow. As for how high the market can rise, it will give its own answer—no need for me to say more.