A-share opening express | Three major indexes fluctuate and rise, state-owned enterprise reform concept consistently active

On September 23, the three major indexes opened with mixed gains and losses, followed by a volatile uptrend. As of the time of publication, the Shanghai Composite Index rose 0.22%, the Shenzhen Component Index rose 0.6%, and the ChiNext Index rose 0.42%. In terms of market performance, the CRO concept continued to be active, with Hainan Shuangcheng Pharmaceuticals rising for the 7th consecutive day, Xinjiang Bai Hua Cun Pharma Tech, and ChemPartner PharmaTech rising more than 9%. The US Senate NDAA did not include the biodefense proposal; the spot gold price broke through $2600, reaching a historic high, with gold stocks opening higher, Pengxin International Mining rising more than 5%, and Shanjin International Gold rising nearly 2%; state-owned enterprise reform concept was active, Baoding Tianwei Baobian Electric reached the limit up, Shijiazhuang ChangShan BeiMing Technology, Longyan Kaolin Clay, and Datang Telecom Technology all hit the limit up; the lithography machine concept initially declined, Shanghai Highly dropped nearly 7%, Sanhe Tongfei Refrigeration and Shanghai Zhangjiang Hi-Tech Park Development both dropped more than 5%; real estate stocks initially fell, Beijing Electronic Zone High-tech Group hit the limit down, Beijing Airport High-Tech Park fell more than 6%. In terms of main fund flows, funds favored the medical services and battery industries, while funds left the power grid equipment and software development industries. Institutional views Looking ahead, China Securities Co., Ltd. believes that the A-share market's sentiment bottom and valuation bottom conditions have basically been met. If the policy bottom is further confirmed, the market will form a resonance counterattack signal. China Securities Co., Ltd.: The bottom is approaching, be prepared at all times The Jian Investment Strategy team pointed out that the bottom is approaching, be prepared at all times. The A-share market's sentiment bottom and valuation bottom conditions have basically been met, if the policy bottom is further confirmed, the market will form a resonance counterattack signal. It is not advisable to be bearish at this time, and one should be prepared at all times. In addition, attention should be paid to the historical laws of the A-share market, as the market style in the fourth quarter is significantly different from the first three quarters, focusing on potential high-elasticity varieties. Huatai: The A-share market bottom pattern is emerging Huatai's research report believes that last week, the A-share market rebounded slightly, which may be mainly driven by the landing of the 50bp rate cut by the Federal Reserve and expectations of domestic policy easing. Investors are concerned about whether the timing and space of this round of adjustment is in place. Huatai believes that in terms of space, the bottom pattern of the A-share market is emerging. There are signs of stabilization in margin trading balances, the price-performance ratio of dividend stocks has improved, and last week's strong stocks rebounded, and counter-cyclical funds showed a turning point - recent industrial capital net increase actually turned positive. in terms of time, the Federal Reserve's rate cut only provides favorable conditions, and a sustained rebound may still require patience. Focus on the following allocation clues for corresponding varieties - AH premium convergence, non-financial A50, actively replenish warehouses and sustainability, and benefit from rate cuts. CITIC SEC: There may be more room for loose monetary policy and there is still a possibility of LPR rate cuts in the fourth quarter CITIC SEC's Chief Economist Ming Ming pointed out in his comments that the Federal Reserve has started a rate cut cycle, and the pressure to stabilize the exchange rate has gradually eased, which may provide more room for loose monetary policy. It is expected that the need to strengthen counter-cyclical adjustments remains high, and it is still necessary to add to loose monetary tools in the future, and there may still be a possibility of LPR rate cuts in the fourth quarter. Hot sectors 1. Strong performance of CRO concept stocks CRO concept stocks opened higher, with Hainan Shuangcheng Pharmaceuticals rising for the 7th consecutive day, WuXi AppTec, ChemPartner PharmaTech, Pharmaron Beijing, Xinjiang Bai Hua Cun Pharma Tech, and Porton Pharma Solutions all rising more than 5%. Comments: In terms of news, the US Senate Armed Services Committee revealed on the 19th the Senate version of the National Defense Authorization Act for Fiscal Year 2025, which includes 93 amendments, but does not include the "Biodefense Act" related proposal. China Securities Co., Ltd. pointed out that domestic CXO companies still have certain competitive advantages compared to global companies. The overall valuation of the CXO sector is currently at a low level, and in the long run, there is still optimism about the development potential and growth space of the CXO sector. 2. Gold stocks opened higher Gold stocks opened higher, with Pengxin International Mining rising more than 5% and Shanjin International Gold rising nearly 2%. Comments: On September 20, the spot gold price broke through $2600 to reach a historic high, and the closing price last Friday was close to $2622. Several Wall Street investment banks predict that the target price for gold by the end of the year or the first half of next year will reach $2700, and some institutions even call for a target price of $3000. This article is reproduced from "Tencent Stock Selection", GMTEight editor: Xu Wenqiang.