A-share market closing review | Shanghai Composite Index rose by 0.69%, circulated small article! Chinese assets soared

Today, China's asset collective rose sharply, with offshore renminbi against the US dollar rising by over 300 basis points intraday, the Hang Seng Index rebounding strongly by over 2%, and the A-share market also experiencing a bullish trend with all three major indexes closing in the red. In terms of market performance, consumer stocks were strong, with dairy and liquor leading the way, with stocks like Jiugui Liquor and Chacha Food hitting their daily limit up; state-owned enterprise reform concepts remained active, with Baoding Tianwei Baobian Electric rising by over 129% in 13 trading days; the real estate sector continued to be strong, with industry leader Beijing Electronic Zone High-tech Group hitting a three-day limit up streak; the China Shipbuilding Industry Group Power weakened, falling by over 5%. Overall, market turnover exceeded 600 billion, with over 4700 stocks rising in both markets. It is worth noting that following the Fed's rate cut, positive news also emerged in the market. On September 20th, the September LPR pricing is expected to be announced, with market expectations of a possible 20bp decrease; in addition, expectations for a decrease in existing home loan rates are also strengthening. There are also rumors circulating about economic and consumer stimulus. Although there is no official confirmation at present, the market clearly sees this as a positive development. According to reports from Chinese securities journalists, there is a possibility of changes in interest rates tomorrow. Specifically, micro-cap stocks continued to be strong, with small-cap technology stocks leading the way, such as QITIAN Technology Group and Shenzhen Infogem Technologies hitting their daily limit up. On the news front, on the 18th, the Federal Reserve announced a 50 basis point cut in the federal funds target rate. Some institutions believe that the Fed's rate cut will benefit the performance of technology growth stocks, with small-cap stocks expected to show resilience. Liquor stocks rebounded strongly, with Jiugui Liquor, Gansu Huangtai Wine-Marketing Industry hitting the daily limit up, and Kweichow Moutai rebounding from its lows, with an intraday volatility of nearly 4%. Wanlian Securities stated that as inventories gradually clear, consumption continues to recover, and investor confidence returns, despite recent valuation sell-offs, some fundamentally sound liquor stocks are expected to see a valuation recovery trend. Looking at individual stocks, there were 4799 stocks rising and 489 stocks falling in both markets, with 63 stocks hitting the daily limit up. At the close, the Shanghai Composite Index rose by 0.69% to 2736.02 points, with a turnover of 280.5 billion yuan; the Shenzhen Component Index rose by 1.19% to 8087.60 points, with a turnover of 346.1 billion yuan. The Growth Enterprise Market Index rose by 0.85% to 1546.47 points. Fund flows Main funds focused on the securities, industrial metals, and electric power equipment sectors, with leading stocks with net inflows of main funds including Zijin Mining Group, LBX Pharmacy Chain Joint Stock, and Contemporary Amperex Technology. Highlights: 1. Ministry of Natural Resources: Actively compiling national territorial spatial planning for the double-city economic circles of Beijing-Tianjin-Hebei, Yangtze River Delta, Yellow River Basin, and Chengdu-Chongqing. Deputy Minister of Natural Resources, Liu Guohong, stated in a press conference on September 19th that national territorial spatial planning for the double-city economic circles of Beijing-Tianjin-Hebei, Yangtze River Delta, Yellow River Basin, and Chengdu-Chongqing is currently being actively compiled. Continuously optimizing planning and land policies to support the construction of the "three major projects" including affordable housing, urban village redevelopment, and dual-use public infrastructure, implementing the re-development of low-efficiency urban land, and promoting new urbanization; learning and applying the experience of the "thousand ten-thousand project" to formulate and implement village planning according to local conditions, advancing comprehensive land improvement across all regions, and supporting comprehensive rural revitalization. 2. Successfully launched the last two backup satellites of the Beidou-3 system and commenced new technology trials for the next-generation Beidou system. Today, China successfully launched the fifty-ninth and sixtieth satellites of the Beidou navigation system at the Xichang Satellite Launch Center using the Long March 3B carrier rocket with the Sunsynchro One upper stage. According to the China Spacesat Navigation System Management Office, the two satellites launched this time will conduct new technology trials and experiments for the next-generation Beidou system while ensuring stable operation of the Beidou-3 global satellite navigation system. Compared to previous Medium Earth Orbit (MEO) network satellites, this group of satellites has upgraded onboard atomic clock configurations, carried new inter-satellite link terminals, and will further enhance the reliability and performance of the Beidou-3 global satellite navigation system in terms of positioning, navigation timing, global short message communication services, while supporting the stable operation and extensive application of the Beidou system, will also conduct trials related to the upgrade of the next-generation Beidou navigation satellites. 3. Guangdong: Electric bicycles eligible for a one-time subsidy of 500 yuan for trading in old models, aiming to replace 400,000 new models. The Guangdong Electric Vehicle Association held a policy interpretation training session on the "trading in old models for new models" policy for electric bicycles on September 19th, introducing subsidy standards, implementation processes, etc., to help electric bicycle industry production and sales enterprises understand the "trading in old models for new models" policy and related implementation requirements, grasp the operational procedures of the "trading in old models for new models" system, actively respond to national policies, boost consumption, and promote industry development. Relevant personnel from the Guangdong Electric Vehicle Association stated that the implementation of the Guangdong Electric Bicycle "trading in old models for new models" policy is set for September 1, 2024 to December 31st. Consumers participating in the policy can receive a one-time subsidy of 500 yuan if they scrap their registered and licensed old electric bicycles (including batteries) in Guangdong province and purchase a new qualified vehicle priced at 1500 yuan or above. Previously, the General Office of the Guangdong Provincial People's Government issued the "Implementation Plan for Using Special National Bonds to Support the Replacement of Consumer Goods with Old Models," which also outlined the goal of the province's electric bicycle "trading in old models for new models" initiative: the entire province (excluding Shenzhen) aims to achieve the replacement of 400,000 electric bicycles. Market outlook 1. EB Securities: The market may have bottomed out.1. EB Securities pointed out that, from the trend perspective, the Shanghai Composite hit a low on Wednesday and rebounded, while the turnover was less than 500 billion, the third lowest at the end of the year. After the "ground amount", it is expected to see the "ground price", indicating that the index may have completed its bottoming out. Next, as the Fed's interest rate cut officially lands, domestic monetary policy is also expected to exert force, which may drive A-shares to bounce back from the bottom. 2. Huatai: Currently, the market has reached a new low, with limited downside potential Huatai pointed out that the market has reached a new low in this phase, with limited downside potential. Firstly, the latest macro indicators such as social financing and inflation data show that domestic demand still needs to be repaired, but some market funds are gradually becoming less responsive to this. Secondly, the adjustment of high-performing dividend assets is approaching its end, with bank stocks and other group sectors retracing most of their gains. Thirdly, some products of A500ETF fund completed fundraising before the holiday, and the establishment of positions for corresponding component stocks is expected to bring liquidity. In the future, with global risk-free rates starting to decline, attention needs to be paid to how interest rate cut trades will unfold. If the loose expectations continue to strengthen, the growth sector may see opportunities. However, considering the current domestic fundamentals, it is difficult to say that the performance of some companies has hit bottom. In terms of trading strategy, it is necessary to maintain both offensive and defensive positions, and dividend stocks such as bonds and some quasi-bond products still deserve attention. 3. Guorong Securities: The combination of multiple factors may be the opportunity for A-shares to rebound Guorong Securities pointed out that the Shanghai Composite reclaimed 2700 points on Wednesday, with major financial, lithography, real estate, and coal sectors leading the gains. The market is still waiting for the window of opportunity for further gains, with multiple factors such as the Fed's interest rate cut landing, the LPR adjustment on Friday, and the strong expectation for lowering the existing housing loan interest rates. The combination of multiple factors may be the opportunity for A-shares to rebound. This article is reproduced from "Tencent Stock Selection". Editor: Liu Jiayin.