CITIC Securities Forecasts Rebound Trading Window in Market
CITIC Securities, a leading financial services company in China, has released a research report predicting that policy efforts to improve the market will lead to a rebound trading window in the near future.
The report highlights that the stabilizing capital market policy has been focused on improving market expectations, effectively blocking the negative feedback process in the market liquidity cycle chain. As a result, the market has entered a monthly-level rebound trading window.
Several factors have contributed to this prediction, including timely responses from the securities regulatory authorities, accelerated reform measures on the investment side, increased support policies in the real estate sector, and anticipated interest rate cuts in February.
Additionally, the State-owned Assets Supervision and Administration Commission’s emphasis on the investor returns of listed central enterprises is expected to act as a ballast for the market. Policies aimed at improving the business environment have also been introduced frequently, leading to a gradual recovery of market confidence.
The report also notes that quasi-“levelling” funds have broken negative feedback, alleviating the pressure of snowball knock-in and quantitative liquidation. This, in turn, has accelerated the process of equalizing institutional positions.
Furthermore, the implementation of annual report performance forecasts has led to the full release of performance risks in the fourth quarter, creating a trading window period with characteristics of trading funds.
During this period, low dividends of central enterprises and high dividend sectors are expected to be the most consensus main lines, with attention also given to low layout opportunities for blue-chip companies with outstanding valuations.
Overall, CITIC Securities’ research report suggests that the market is poised for a rebound, creating trading opportunities for investors. (Source: China Finance Network)