By using the Chinese stock market data from 2018 to 2024, the weak association between structural trends stocks and market index under investors’ preference effect in trading cause the market is lack of liquidity and more likely to be dominated by structural trends, as in this market, the willingness to engage in passive trading exceeds that for active trading and investors’ preference easy to reverse toward market volatility. The lack of incremental capital in the market often leads to sector-specific rallies rather than broad-based increases, which is one of the key reasons why the Chinese stock market has struggled to achieve overall growth over the long-term period.