A-share market opening express | Shanghai Composite Index regains 2900 points! All three major indexes rose more than 2%

On September 25th, A-shares continued to open significantly higher, with all three major indices rising by over 2%, and the Shanghai Composite Index regained the 2900 points mark. As of the time of writing, the Shanghai Composite Index was up 2.17%, the Shenzhen Component Index was up 2.31%, and the ChiNext Index was up 2.35%. In terms of the market, the large financial sector remained active, with Tianfeng, Minmetals Capital, Shanghai Aj Group, and Cofco Capital Holdings all hitting the limit up; steel stocks continued to rise, with Guangdong Zhongnan Iron & Steel up for the third consecutive day, and Hunan Valin Steel and Bengang Steel Plates hitting the limit up; state-owned enterprise reform concepts remained active, with Datang Telecom Technology up for the seventh consecutive day, and Jilin Yatai, Qingdao Doublestar, and others hitting the limit up. The China Securities Regulatory Commission released the "Opinions on Deepening the Market Reform of Mergers and Acquisitions of Listed Companies" yesterday; real estate stocks rose initially, with Financial Street Holdings, CCCG Real Estate Corporation, and others hitting the limit up. In terms of declines, popular high-priced stocks saw declines, with Shenzhen Huaqiang Industry, Yunnan Nantian Electronics Information hitting the limit down for two consecutive days, CHINA BEST Network Security hitting the limit down, and Shanghai Highly, Shijiazhuang ChangShan BeiMing Technology, Beijing Electronic Zone High-Tech Group, Baoding Tianwei Baobian Electric, Shenzhen Farben Information Technology seeing significant declines. In terms of main capital flows, funds favored the battery, real estate development, and industrial metals industries; while funds exited the photovoltaic equipment, communication equipment, and securities industries. Institutional Views Looking ahead, although the bottom logic of the stock market still depends on the economy, the current valuation of A-shares is at historical lows. With the stimulus of major positive news, a comprehensive valuation repair wave in the market is something to look forward to. China Securities Co., Ltd.: Anticipating a comprehensive valuation repair wave in the market under the stimulus of major positive news On September 24, the State Council Information Office held a press conference, announcing a large number of upcoming policy measures, including the creation of two new monetary policy tools to support the stable development of the stock market. This policy shift will have far-reaching impacts on the market and will lay a solid foundation for the long-term stable development of the stock market. Although the bottom logic of the stock market still depends on the economy, the current valuation of A-shares is at historical lows. With the stimulus of major positive news, a comprehensive valuation repair wave in the market is something to look forward to. CITIC Securities: Short-term setbacks may occur after the sharp rise in the stock market, but the rebound is expected to continue The CICC research report pointed out that the current valuation of the A-share market is already at extreme levels, with the Shanghai and Shenzhen 300 Index forward valuation at near historical lows of one standard deviation, with both horizontal and vertical dimensions showing significant investment attractiveness; trading and behavioral aspects also exhibit common historical bottom features, with the turnover rate of A-shares calculated by free float market cap in the previous period at historical bottom levels of around 1.5% (historically, turnover rates during bottom periods have been around 1%-2%). In this context, the appearance of positive policy signals is expected to boost investor sentiment, and while short-term setbacks may occur after the sharp rise in the stock market on September 24th, the rebound is expected to continue, and market trend stability will still require attention to changes in the fundamental expectations of listed companies. CITIC SEC: Comprehensive financial policies implemented, benefiting bank fundamental expectations The CITIC SEC research report stated that the press conference held by the monetary policy and financial regulatory three ministries and commissions announced a package of financial policies to support the real economy, with clear intent to boost market confidence. For banks, the adjustment of mortgage loan rates will have a negative impact on the pricing of bank assets, and the subsequent decline in LPR and deposit rates will have a neutral impact on bank interest margins. The increase in swap tools will make it easier for non-bank institutions to finance and make targeted investments in the stock market, while the re-lending tool will help listed companies increase their holdings through stock buybacks. Index-weighted stocks with strong qualifications and liquidity have more operational space, and listed banks are expected to benefit directly. Hot Sectors 1. Strong performance in the large financial sector continues The large financial sector continued to show strength, with Tianfeng, Minmetals Capital, Shanghai Aj Group, Cofco Capital Holdings, Anhui Xinli Finance, Holly Futures, and over ten other stocks hitting the limit up. Comment: The CITIC SEC research report stated that the press conference held by the monetary policy and financial regulatory three ministries and commissions announced a package of financial policies to support the real economy, with clear intent to boost market confidence. 2. Active performance in the steel sector continues The steel sector remained active, with Guangdong Zhongnan Iron & Steel up for the third consecutive day, and Hunan Valin Steel and Bengang Steel Plates hitting the limit up. Anyang Iron and Steel, Hbis Resources, Lingyuan Iron & Steel, and others all opened higher. Comment: Recently, Jin Xiandong, director of the Policy Research Office of the National Development and Reform Commission, stated that efforts will be focused on making up for shortfalls and strengthening areas of weakness, and that efforts to accelerate the construction of a modern industrial system supported by the real economy will be made. In terms of strengthening areas of weakness, efforts will be made to promote consolidation in key industries such as steel. Various local governments are also actively promoting consolidation in the steel industry. Industry insiders also stated that with the approach of the National Day holiday, downstream restocking demand will be released, benefiting the steel industry.The social inventory is expected to continue to decrease.This article is reprinted from "Tencent Self-selected Stocks", GMTEight editor: Xu Wenqiang.