A-share closing review: Trading volume less than 480 billion! Active in stocks starting with Chinese character "zhong"

Today, the market staged a bottoming and rebound, with the Shanghai Composite Index regaining the 2700-point mark, while the ChiNext 50 Index saw a significant decline. Looking at the market, stocks with Chinese characters, banks, and insurance sectors were active against the trend, with China Life Insurance hitting a new high for the year; real estate stocks surged in the afternoon, with CCCG Real Estate Corporation hitting the limit up; the home appliance sector rose, with Shanghai Highly hitting the limit up; the photolithography and photoresist themes were strong, with multiple stocks like Sanhe Tongfei Refrigeration hitting the limit up; liquor stocks continued to weaken, with the market value of Kweichow Moutai falling below 1.6 trillion; and the consumer electronics concept led the market lower. Overall, the market turnover was less than 480 billion, with over 3600 stocks falling in the two markets. Specifically, the photolithography and photoresist themes were strong, with many stocks such as Sanhe Tongfei Refrigeration, Nanjing Wavelength Opto-Electronic Science & Technology, and Shanghai Highly hitting the limit up. In terms of news, to promote the innovation and application of major technical equipment, the Ministry of Industry and Information Technology recently issued the "Guidance Catalog for Promoting the Application of Major Technical Equipment (2024 Edition)," which includes "Integrated Circuit Production Equipment" such as fluorine argon lithography machines, with a light source of 193 nm, a resolution of 65nm, and an overlay of 8nm. Liquor stocks continued to weaken, with Kweichow Moutai falling nearly 3%, accumulating a decline of over 25% for the year and falling below 1.6 trillion in market value, ranking 4th in A-shares. Guotai Junan research report pointed out that liquor industry sales from August to September showed a slight rebound compared to the previous months, but demand in most regions still declined year-on-year, with significant pressure on prices greater than the pressure on sales volume (price pressure represented by Feitian), focusing mainly on core single products in the 100-200 yuan and above 200 yuan price ranges. In terms of individual stocks, there were 1520 stocks rising and 3649 falling in the two markets, with 182 stocks remaining unchanged. There were a total of 32 stocks hitting the limit up and 31 stocks hitting the limit down. At the close, the Shanghai Composite Index rose 0.49% to 2717.28 points, with a turnover of 213.1 billion yuan; the Shenzhen Component Index rose 0.11% to 7992.25 points, with a turnover of 266.2 billion yuan. The ChiNext Index fell 0.11% to 1533.47 points. Fund Flows Today, main funds were actively buying white goods, banks, IT services, and other sectors, with top stocks for net inflows including Shijiazhuang ChangShan BeiMing Technology, Greatoo Intelligent Equipment Inc., Agricultural Bank Of China, etc. News Review 1. General Administration of Sport: Research and formulation of policies related to events to further enrich the event consumption scenario Deputy Director of the General Administration of Sport Zhou Jinqiang stated on September 18 at a press conference that the General Administration of Sport will do three things in the future: play the policy card well. The General Administration of Sport will introduce more policy measures to release policy dividends, research and formulate policies related to events, break bottlenecks, and further enrich the event consumption scenario. Play the event card well. The General Administration of Sport will continue to work with relevant departments to promote activities such as "traveling with events" and "sports events entering scenic areas, streets, and commercial areas," making their benefits more significant. Play the publicity card well. Summarize good experiences and practices in various regions in the field of event economy and event consumption, strengthen publicity and promotion, and the General Administration of Sport has issued the first batch of cases of event economy practices, and will also issue the second batch of cases to promote and guide the better development of the event economy. 2. Four departments deploy the work of formulating lists of integrated circuit companies that will enjoy the additional deduction policy in 2024 According to the official WeChat account of the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation, among other four departments, recently issued a notice deploying the work of formulating lists of integrated circuit companies that will enjoy the additional deduction policy in 2024, clarifying the management methods of the list, the conditions for companies to enjoy the policy, and other content. According to the notice, after the list is issued, companies can calculate and write off but not yet written off the additional deduction in the current period. Companies listed in the 2024 list will enjoy the policy from January 1, 2024; companies listed in the 2023 list but not in the 2024 list will stop enjoying the policy on November 30, 2024. 3. Guangzhou Nansha "lifts purchase restrictions" and "buy a house to get a hukou"? Sales have already begun After buying a house in Huadu, Guangzhou enjoys "quasi-hukou" treatment, recently, another outlying area of Guangzhou, Nansha district, has also heard news of "buying a house can be registered," in addition to the rumor of "lifting purchase restrictions." Although the official has not publicly confirmed the authenticity of the above real estate policy adjustments, at the forefront of real estate sales, real estate agents and sales offices staff stated that the policy is already being implemented. Future Trend Analysis 1. CITIC SEC: It is recommended to continue to increase the baseline by allocating dividends and going overseas CITIC SEC believes that the weak macro price signals continue, internal policy responses still need to be observed, and external signal disturbances are not yet enough to affect domestic policies; since September, the inflow of supporting funds has decreased, accelerating the full reflection of market expectations in stock prices, and the bottoming process is expected to shorten, with incremental policies expected to dominate the market in the short term before the policy is implemented; it is recommended to continue to increase the baseline and patiently wait for a turning point signal. 2. China Securities Co.,Ltd.: Strong stocks in the short-term A-share market continue to fall, with market bottom characteristics The research report by China Securities Co.,Ltd., Chen Guo, pointed out that Chinese policies are entering a critical period for observation, with extremely low market sentiment in the short term, strong stocks continue to drop.Possess bottom characteristics of the market. The future market trend still depends on the further implementation of policies to expand domestic demand, focusing on domestic demand-oriented industries. Seize proactive investment opportunities, as the platform economy has actively reformed and accelerated its transformation in the past three years, entering a new stage with online growth rates leading the recovery. Pay attention to the internet platform economy; the sharp decline in real estate sales is gradually passing, and related support policies can be expected. The effectiveness of domestic policies to boost domestic demand by trading in old for new is beginning to show, and we await further efforts in this regard.Huaxi: The current position is not suitable for being overly pessimistic. The current P/E ratio (TTM) of the Shanghai and Shenzhen 300 Index is already below 11 times, close to the low point in February, and more than half of listed companies have valuations lower than the low point in February this year. The current position should not be overly pessimistic. Looking ahead, incremental macro policies are an important driver for A-shares valuation recovery. We believe measures such as reserve requirement ratio cuts, interest rate cuts, lowering existing home loan rates, and accelerating the issuance of special bonds can be expected. If incremental policies can effectively boost confidence in the fundamentals, A-shares are expected to transition from the current sluggish trend to a trend of increasing trading volume. This article is reproduced from "Tencent Self-selected Stocks", GMTEight editor: Liu Jiayin.