From Infrastructure to Applications: How This Bull Market Is Reshaping Investment Opportunities

Guosen Securities Chief Economist Xun Yugeng has outlined a compelling framework for understanding the next phase of market development. The bull market that initiated on September 24, 2024, mirrors economic conditions from May 19, 1999—an environment characterized by persistent deflation paired with sustained policy easing measures that show no signs of reversal entering 2025 and beyond.

Market Cycle Still in Early Stages

According to Xun’s analysis, this current bull market cycle has not yet exhausted its temporal or spatial boundaries. Historical parallels suggest that market sentiment remains far from its peak. While the second stage of this bull market showed strength concentrated in select sectors, the recovery pattern will gradually broaden across the market spectrum as household capital continues flowing into equities.

The Pivot Point: Computing Power to Applications

The most significant insight from Xun’s research concerns the strategic shift within the technology sector. The initial rally centered on computing power infrastructure—the foundational layer supporting AI and data processing capabilities. However, as the bull market transitions into its third phase, the focus is expected to shift decisively toward application-layer opportunities.

This transition represents a natural market evolution: after investors capitalize on infrastructure buildout, attention turns to the companies and platforms actually deploying these technologies in real-world solutions.

Revaluation Opportunities Beyond Tech

While technology dominates headlines, Xun highlights overlooked segments with revaluation potential. Traditional sectors including consumer staples (liquor and beverages) and real estate may find renewed investor interest as capital becomes more broadly distributed throughout the market.

Conclusion

The bull market initiated in late September 2024 retains considerable runway ahead. Policy support remains firmly accommodative, and the market’s recovery phase is transitioning from concentrated point gains to widespread sectoral participation. For investors tracking the technology rally, the upcoming shift from computing infrastructure to applications represents the defining narrative of this bull market’s next chapter.