CSI300 gained 15.7%
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The CSI 300 surged 15.7% this week on volume above the average and higher than the last week. The market condition was Confirmed Uptrend. On Tuesday, the Shanghai index hit the biggest single-day gain since July 6, 2020, with turnover of RMB971.3 billion in Shanghai and Shenzhen exchanges, an increase of RMB420.3 billion compared with the previous trading session. On Wednesday, A shares fell back after surging high, but the turnover exceeded RMB one trillion, showing a significant improvement in market sentiment. On Thursday, the Shanghai index regained the three thousand point mark. As of the close of trading on Friday, the turnover of the Shanghai and Shenzhen markets exceeded RMB one trillion for three consecutive trading days. This week the CSI 300 index recovered all the key moving averages consecutively and is now above all the key moving averages, hitting a new high this year. The Information Office of the State Council released several major benefits at a press conference on Tuesday, including preparations to cut the reserve requirement ratio by 0.5 percentage points in the near future (The People’s Bank of China officially announced a 0.5 percentage point cut in the reserve requirement ratio this Friday.), lower interest rates on stock mortgages and standardize the minimum down payment ratios for mortgages. For the first time, the People’s Bank of China created structural monetary policy tools to support the capital market, supporting eligible securities, funds and insurance companies to exchange highly liquid assets from the central bank by pledging bonds, stock ETFs, and CSI 300 constituent stocks, and the funds obtained can only be used to invest in the stock market. Meanwhile, the creation of refinancing for stock repurchases and increasing holdings will guide banks to provide loans to listed companies and major shareholders to support the repurchase and increase of stock holdings. In addition, a leveling fund is under study. The one-year medium-term lending facility (MLF) rate of 2.0% in September was 0.3 percentage points lower than the previous month. Expect the subsequent LPRs to move lower following it. With high market sentiment this week, investors are advised to gradually build up their positions and focus on stocks that are both technically and fundamentally good. Due to the fact that there is only one trading day next week, articles will be offline for a week next week.
Leading: Consumer Staple (+23.7%), Real Estate (+20.5%), Financial (+16.6%); Lagging: Communication Service (+6.2%), Utility (+7.4%), Energy (+10.4%).
【A33】portfolio rose 13.5% with 32 stock up and 1 down. A modern enterprise specializing in the development and manufacture of automotive parts Ningbo Sngn Auto Parts (300100) led the gains. The stock rose 31.9% this week. RS and AD ratings were 99 and A. DG rating was 78.
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published on September 27, 2024