The Shanghai Stock Exchange Index fell below 2,900 points again on Monday, January 29th, as the three major stock indexes collectively closed down. The Shanghai Composite Index closed at 2883.36 points, down 0.92%, the Shenzhen Component Index closed at 8581.76 points, down 2.06%, and the GEM Index closed at 1623.81 points, down 3.49%. Over 4,800 stocks in Shanghai, Shenzhen, and Beijing fell. The total trading volume of A-shares was 815.071 billion yuan, a decrease from last Friday’s 839.484 billion yuan.
Several securities firms have weighed in with their analysis of the market. Huaan Securities mentioned that although the central bank cut reserve requirements and targeted interest rates more than expected, relevant departments quickly issued measures to stabilize the asset market, which improved market risk appetite and ushered in a rebound. However, A-shares will still face many tests in the future. The market is expected to continue to show a volatile trend, waiting for verification of improvement in fundamentals or confirmation of increased macroeconomic policies.
On the other hand, Ping An Securities pointed out that the current overall opportunities in the equity market still outweigh the risks, and the market is expected to get out of short-term troubles with policy confidence. Haitong Securities also noted the frequent good news in the market recently but advised that it will take some time to restore confidence. Their outlook indicates that the reshaping of the value of central state-owned enterprises will be accelerated this year, leading to market value management and potential investment opportunities.
In terms of investment opportunities, Ping An Securities highlighted three areas of potential benefit: dividend strategies, central state-owned enterprises, and sound performing companies in the market.
The general forecast from these securities firms is that the market will continue to be volatile, but there are still opportunities for investors to capitalize on. However, they also caution that the outlook for A-shares remains uncertain and dependent on various economic and policy factors.
The article emphasizes the importance of this information for investment decisions, while also stressing that it is not to be taken as personalized investment advice. The original article is sourced from China Business News.