Over the past three decades, the A-share market in China has been characterized by a persistent struggle between bull and bear phases, with short bull runs followed by long bear markets and significant volatilityIt has indeed become conventional wisdom among analysts, academia, and industry experts to hope for a more stable and gradual bull market, often referred to as a "slow bull," which is perceived to align with the long-term interests of investors and favor healthy economic development.

When discussing the concept of a "slow bull," comparisons with the U.Sstock market are unavoidableData from a domestic research institution points to stark contrasts between the two markets: over the past 30 years, the average duration of bear markets in the A-share market stands at 27.8 months with an average drop of 56.4%, while bull markets last about 12.1 months with average gains of 217.2%. This indicates a striking pattern of shorter bull runs and longer bear phases.

Conversely, the U.S

market experiences bear markets that last approximately 18 months with a decrease of 31.5%, while bull markets endure for about 47 months, achieving an average increase of 122.5%. Here, bull markets significantly outlast bear markets, demonstrating a tendency towards moderate bull runs.

Why is it that the A-share market struggles to achieve the same kind of "slow bull" momentum as seen in the U.S.? To address this question, we must analyze the behaviors and motivations of three principal participants in the market: individual investors, listed companies, and regulatory bodies.

For many participants in the A-share market, the immediate desire leans towards achieving rapid gains rather than fostering a gradual riseIndividual investors dominate the A-share landscape, with statistics indicating that as of the second quarter of 2024, institutional investors accounted for 48.99% of the shares, while individual investors held 28.15%. This reliance on individual investors often leads to herd mentality and heightened volatility, as these investors chase quick profits.

In stark contrast, institutional investors comprise about 60% of the U.S

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stock market, contributing to a culture of sustained investment strategiesConsequently, the lack of patience capital such as pension funds and insurance money in China's market amplifies volatility and reactive trading behaviors, with individual investors representing a staggering 82% of trading volume.

The phenomenon of speculative trading is further exacerbated by examples of wildly inflated new stock launchesFor instance, a company known as "Hong Sifang" made headlines in November 2024 with its stock price skyrocketing up to 22 times its initial value on the first day, leading to immense short-term profits for early investors.

While certainly a boon for some, this culture of 'quick bull' not only inflates share prices beyond reasonable valuations but also reflects a misguided expectation within the market where investors prefer immediate gratification, as illustrated by the fervent response to “Hong Sifang”, a producer of fertilizers and a subsidiary of the China Salt Group.

The resulting excessive valuations offer short-term benefits to company executives and major shareholders who, as these stocks peak, can easily cash out, significantly "improving their lives." This pattern was glaringly evident during a sudden market upturn in September, leading significant shareholders across various listed firms to rapidly divest their stakes, raising alarm bells about the long-term health of the market.

Additionally, regulations can often hinder the establishment of a fair and equitable market system

The Chinese Securities and Regulatory Commission is frequently burdened with criticism over its inability to stabilize the market effectively, even while acknowledging that its rules were intended to protect investors.

Scholarly discussions have pointed out several systemic issues contributing to the A-share market's tendency towards elongated bear markets and brief bull runs, including outdated issuance procedures, insufficient enforcement of delisting rules, a lack of robust investor protections, and an overly sensationalized media landscape that distorts public perception and fuels policy-driven trading.

Fundamentally, it has been determined that the core obstacle lies in how regulatory bodies perceive their rolesAn example can be drawn from recent remarks made on market psychological thresholds, where interventions are often aimed at supporting stock prices rather than ensuring true market dynamics.

To cultivate a healthier market environment conducive to gradual investment growth, regulators must consider shrinking their direct market interventions and clarify that their focus should be on fostering fair play rather than manipulating perceptions of stock movements

An emphasis must be placed instead on creating regulations that empower sustainable market practices, allowing gradual increases in stock values where necessary.

Although these changes seem distant under the current market conditions, individual investors seeking long-term success may need to seek out holistic strategies that align with the enduring principles of patience, research, and diversification instead of chasing fleeting trendsMaintaining a lookout for quality companies and avoiding the temptations of market fads could yield favorable outcomes even in a climate characterized by quick fluctuations.

In summary, while the A-share market continues to display a cyclical pattern of exceptionally quick bull runs followed by protracted bear periods, the change to a more stable investment landscape hinges on shifts in regulatory perspectives, investor mentality, and inherent market structures that encourage gradual value appreciation