CSI 300 fell by 1.08%
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This week, the A-share market continued to be in a “rebound attempt” phase, with major indices showing volatile movements. The SSE Index(000001) saw a weekly decline of merely -0.03%. Despite the index failing to sustain last week’s upward trend, its current position remains 24.46% above the yearly low, still having an 8.90% gap from reaching a new yearly high. Market trading volumes have been cautious, indicating increased short-term wait-and-see sentiment among funds, potentially related to uncertainties in Federal Reserve policies and enhanced expectations for domestic macroeconomic regulation.
The CSI 300(000300) performed relatively weakly, with a weekly drop of -1.08%. The Shenzhen Index(399001) and ChiNext(399006) recorded declines of -0.91% and -1.4%, respectively, with the tech growth sector facing overall pressure, especially as the ChiNext underperformed the main board for the third consecutive week, reflecting that market risk appetite remains low.
In terms of Hong Kong stocks, the Hang Seng Index(HSI) fell by 1.32% this week, with trading volume remaining largely unchanged compared to the previous period. The index retreated below the 10-day moving average but remained firmly above the 50-day and 200-day moving averages, indicating no significant weakening of the overall medium-term trend.
In contrast, U.S. stocks showed strength, continuing their upward trend. TheNasdaq Composite(0NDQC)and the S & P 500 Index(0S&P5) rose by 2.34% and 1.88% this week, respectively. Initial jobless claims in the U.S. for the week ending May 24th were 240,000, higher than the previous figure of 227,000, suggesting a marginal weakening in the labor market. Meanwhile, EIA crude oil inventories significantly decreased by 2.795 million barrels, far lower than the expected increase of 118,000 barrels, interpreted by the market as a signal of demand recovery.
However, more attention-grabbing was the renewed uncertainty surrounding Fed policy expectations. The President of the San Francisco Fed indicated there might be two more opportunities for interest rate cuts this year, contrasting sharply with Dallas Fed’s Logan’s comment that “interest rates may need to be maintained longer.” Furthermore, Trump unusually summoned Fed Chairman Powell, criticizing his failure to cut interest rates as a “mistake,” although both sides did not discuss interest rate policies directly, political pressure has become evident. Amidst rising global risk aversion sentiment, the dollar fluctuated downward, aiding funds in reassessing emerging market allocation logic.
Domestically, the central government introduced multiple policies intensively to aid economic structure optimization and corporate reform: the issuance of “Opinions on Improving the Chinese Characteristic Modern Enterprise System,” clearly accelerating the establishment of a modern enterprise system with Chinese characteristics. Industrial enterprise profits continue to improve, with April’s large-scale industrial enterprise profits growing by 4.3% YoY, achieving positive growth for three consecutive months. Efforts are being made to combat “involution competition,” enhancing resource allocation efficiency. The Ministry of Finance responded to Moody’s maintaining China’s credit rating, emphasizing “a stable economic foundation and controllable debt risks.” Additionally, the General Office of the CPC Central Committee and the State Council jointly issued “Opinions on Establishing a Market-Oriented Allocation System for Resource and Environmental Elements,” providing institutional support for green and low-carbon transitions, benefiting related industry chains in the long term.
Industry-wise, this week saw notable rotations in market hotspots. The Beverages-Non-Alcoholic(G2086IG.CN) industry was the strongest performer, with a weekly increase of 9.67%. Driven by sustained improvement in consumer goods prosperity, warmer weather, and upgrades in health-conscious beverage consumption, stocks within this industry experienced active trading, attracting substantial capital inflows. Comml Svcs-Consulting(G8242IG.CN)followed closely with a 5.92% weekly gain, benefiting from continuous releases of demands for digital economy and corporate digital transformation, leading consulting firms’ profitability steadily improved. Financial Svcs-Specialty(G6412IG.CN) rose by 5.66% this week; despite small daily fluctuations in gains and losses, increased market attention towards innovative financial tools and specialized asset management institutions promoted overall valuation repair in the sector.
This week, the Top33 portfolio performed stably overall, with an average gain of +0.57%, including 15 stocks rising and 18 falling, showing clear structural differentiation. The strongest performer came from the manufacturing technology field, Victory Git.Tech.Huizhou ‘A'(300476), which had a weekly increase of +14.26%. Specializing in high-density PCB circuit boards widely used in servers, new energy vehicles, medical devices, and other high-growth scenarios, the company is one of China’s leading printed circuit board enterprises, equipped with a complete high-end certification system and industry standard-setting qualifications. Demand from growth areas like servers and new energy vehicles drives continuous revenue expansion. With an RS Rating of 98, EPS Rating of 99, O’Neil Score of 73, and industry ranking score as high as 112, it has become a representative stock in this round of structural market trends. Moreover, the company benefits from recent national policy supports for high-end manufacturing, automotive-grade electronics, and digital infrastructure, leading funds to refocus on midstream manufacturers with technological and production capacity advantages.
Overall, the current A-share market remains in a structurally volatile pattern, lacking short-term trending market conditions. However, certain policy-benefited directions and leading stocks in high-growth industries exhibit strong resilience. Key focuses for the future include changes in trading volumes and substantive implementation of policies, particularly whether themes such as SOE reforms and resource allocation mechanism optimizations can attract continuous capital attention. Additionally, against the backdrop of sustained strength in overseas markets and relative stability in the RMB exchange rate, foreign capital flows deserve ongoing monitoring, potentially impacting the phased performance of indices.
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published on May 30, 2025