A-Share Market Witnesses History!
On September 26th, the A-share market saw another significant surge in the afternoon, with all three major indices rising by more than 3%, and the Shanghai Composite Index breaking through the 3000-point mark.
As of the close, the Shanghai Composite Index rose by 3.61%, the Shenzhen Component Index by 4.44%, and the ChiNext Index by 4.42%.
Today's trading volume on the Shanghai and Shenzhen markets reached 1,162.5 billion yuan, an increase of 5.1 billion yuan compared to the previous trading day, marking two consecutive trading days breaking the trillion-yuan mark. Over 5,100 stocks across the market rose, with more than a hundred stocks hitting their upper limit. On the trading board, sectors such as food and beverages, real estate, beauty care, building materials, and non-bank finance led the gains.
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Interviewed individuals believe that investors no longer need to be pessimistic about the upcoming market trends. Today's market movement has essentially confirmed that the market has bottomed out, and opportunities can be sought to actively take long positions.
All three major indices rose by more than 3%.
On Thursday, the A-share market once again experienced an eruption, with the Shanghai Composite Index returning to the 3000-point level. As of the close, the Shanghai Composite Index was up by 3.61%, the Shenzhen Component Index by 4.44%, and the ChiNext Index by 4.42%.
On the trading board, all 31 first-level industries under the Shenwan classification turned red, with no declining sectors. Sectors such as food and beverages, real estate, beauty care, building materials, and non-bank finance led the gains.
The food and beverage sector led the market with a strong overall increase of 8.79%. Within the sector, Pinwo Food hit a 20CM upper limit, while Ligao Food and Three Squirrels rose by more than 12%, and multiple stocks including Tianwei Food, Sanquan Food, and Laobaigan Liquor hit a 10CM upper limit.
The real estate sector experienced a full-scale outbreak, with a surge in stocks hitting their upper limit, leading to an overall increase of 8.08%. Special Service hit a 20CM upper limit, while Greenland Holdings, Sunshine Shares, Yunnan Urban Investment, and Black Peony, among others, hit their upper limits.
In terms of news, on September 26th, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and to deploy the next steps for economic work. The meeting emphasized the need to promote the stabilization and recovery of the real estate market. For the construction of commercial housing, it is necessary to strictly control the increase, optimize the stock, and improve quality. Efforts should be increased to provide loans for "white list" projects and support the revitalization of idle land stock. The meeting also called for responding to public concerns, adjusting housing purchase restrictions, reducing the interest rates on existing mortgages, and promptly improving policies related to land, finance, and taxation to promote the construction of a new model for real estate development.Boosted by related news, the building materials sector also surged, closing up 5.98% overall. Within the sector, KeShun Shares rose by more than 12%, while Hainan RuiZe, Asia Create Energy, Oriental Yuhong, and SanShu Trees were among the many stocks that hit their upper limit.
The non-bank financial sector maintained its strength during the trading session, with East Money rising by more than 13%, and multiple stocks such as Bank of China Securities, AVIC Industrial Integration, and Tianfeng Securities hitting their upper limit.
The Political Bureau of the CPC Central Committee held a meeting and also pointed out the need to increase the counter-cyclical adjustment intensity of fiscal and monetary policies, ensure necessary fiscal expenditures, and effectively carry out the grassroots "three guarantees" work. It is necessary to issue and use ultra-long-term special government bonds and local government special bonds well, to better leverage the driving effect of government investment. Efforts should be made to boost the capital market, vigorously guide medium and long-term funds into the market, and unblock the points of entry for funds from social security, insurance, and wealth management. Support should be given to mergers and acquisitions of listed companies, steadily advance the reform of public funds, and study and introduce policies and measures to protect small and medium investors.
The market has essentially bottomed out.
"The continuous surge in the market mainly stems from the central bank's policy support beyond expectations," said Liu Youhua, Deputy Director of the Wealth Research Department of PaiPai Network. The policy beyond expectations has improved market liquidity and boosted investor confidence. The significant rise in stocks with a logic of being oversold indicates that institutions are actively replenishing their positions, with domestic institutional funds pouring into the A-share market.
Liu Youhua also pointed out that the Federal Reserve entering a rate-cutting cycle, combined with the stimulus of reducing the interest rates on existing mortgages and lowering reserve requirements, is conducive to reversing medium and long-term macroeconomic expectations. The market's confidence in the expectation of economic recovery has been strengthened, thereby driving the strengthening of the renminbi and significantly increasing the attractiveness of renminbi assets, with foreign capital also actively flowing into the A-share market.
Looking forward to the future market, how will A-shares perform?
Liu Youhua believes that investors no longer need to be pessimistic about the upcoming market trends. Today's trend has essentially confirmed that the market has bottomed out, and it is possible to actively look for opportunities to go long. In the early stages of the rebound, focus on the direction of institutional heavy stocks and oversold sectors, mainly including electronics, food and beverages, new energy, pharmaceuticals and biotechnology, and securities sectors.
Furong Fund stated that for the future market, this policy signal is clear and effectively boosts confidence in the capital market. First, market liquidity expectations have improved, and market risk appetite has been enhanced. Second, the policy signal is clearer, and subsequent proactive fiscal policies can be expected. Finally, the specific details and implementation effects of the policy need to be observed, and the inflection point of economic momentum growth can be anticipated. Real estate policies such as the reduction of existing mortgage interest rates and the minimum down payment ratio for mortgages are expected to help stabilize housing prices and alleviate the debt pressure on the residential sector. The current state of weak domestic demand and low inflation is expected to change.
HongHan Investment believes that today's market performance has completely shattered the chips that have been skeptical about the market reversal in the past two days. Looking forward to the future market, the market bottom has been established, and the reversal has been established. What needs to be considered in the future is the rhythm of the bulls. The core of the recent rebound has been the large leading stocks, and a large number of low-position growth stocks have not yet stabilized and rebounded. These stocks will not be absent in the future, and patience can be maintained.A research report from China Merchants Securities pointed out that the recent announcement of capital market support policies has significantly exceeded market expectations, especially in terms of policies that provide substantial financial support to the capital market. As future policy documents are gradually released, they will also form continuous stimulation for the market. From experience, the market's understanding of policies tends to be progressive, meaning that at the initial stage of policy introduction, driven by emotions, many policy details will be overlooked. These policy details are often gradually discovered by the market and evolve into investment opportunities.