After the Spring Festival, the A-share market showed signs of recovery in the first trading week, boosting investor confidence. Following some adjustments in the second week of trading post-holiday, the market once again made strong gains by the end of February 27. The question now on everyone’s mind is whether this market rebound will continue.
According to brokerages and fund companies, there is optimism that the market recovery will persist. Various sectors such as technology growth, dividend style, equipment updates, and consumer goods have garnered institutional attention, indicating a positive outlook for the market.
Positive factors are still accumulating in the market, with all three major indexes rising by more than 1% by the end of February 27. CICC stated that they believe the market recovery since early February will continue, emphasizing the importance of monitoring capital market reforms and policy measures for growth stabilization.
Shenwan Hongyuan Securities sees the current market situation as a mix of oversold rebound and spring restlessness, suggesting that the market will now focus on new catalysts and structural mainline themes. Boshi Fund also expressed confidence in the market recovery, citing policies that have boosted market confidence and repaired risk appetite.
Haitong Securities pointed out that historically, market bottoms usually take 3 to 6 months to form. They see the current rebound as the initial wave from the bottom, with positive factors supporting further upward movement.
In terms of specific sectors, many institutions are bullish on the technology growth sector as a key investment theme. CITIC Securities sees high-quality blue chips as a crucial area for investment allocation this year, alongside technological growth catalyzed by industry developments.
Looking ahead, Bosera Fund and Great Wall Fund are advising investors to focus on sectors that could benefit from policy changes and technological advancements. The dividend sector also presents opportunities, although caution is advised for potential valuation adjustments.
As investors navigate through the market uncertainties, staying informed on sector trends and policy developments will be key to making sound investment decisions.
Reported by Chang Xiaoyu and trainee reporter Fang Lingchen
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