The downward trend continued for major A-share indexes today, with the Shanghai Stock Exchange Index falling 2.09% to close at 2833.62 points, the Shenzhen Component Index falling 2.58% to close at 8759.76 points, and the ChiNext Index falling 3% to close at 1699.62 points. Market turnover remains sluggish, with net northbound capital outflow reported to be 13.057 billion yuan. Despite the overall decline, certain industry sectors such as household light industry and diversified financial sectors experienced a rise.
Various concept stocks with high export sales and a high proportion of exports bucked the trend and experienced increased activity, with some stocks reaching their daily limit. Conversely, new energy stocks, as well as retail and other consumer-based stocks, experienced a decline. Net inflow of industry funds was reported for household light industry and diversified finance, while net outflows were reported for photovoltaic equipment, brewing industry, and consumer electronics.
In other news, the National Bureau of Statistics announced that GDP is expected to exceed 126 trillion yuan in 2023, marking a 5.2% increase from the previous year. There has also been a decrease in the national population by 2.08 million people compared to the previous year.
Additionally, the sales price of commercial residential buildings in various tier cities decreased month-on-month in December 2023, while the National Development and Reform Commission announced plans to promote the development of new industrialization and digital economy to accelerate the development of artificial intelligence.
From an institutional perspective, UBS has forecasted a 15% upside potential in the MSCI (China) Index in 2024. Standard Chartered suggests that there may be more room for industry selection in China’s stock market than in other markets, and Haitong Securities believes that the market is expected to pick up as the internal and external policy environment improves, with phased opportunities in the financial sector. Finally, China Merchants Securities predicts a rebound for weighted sectors.
It is important to note that this article does not constitute investment advice and should be used for informational purposes only.
Source: Oriental Fortune Choice data