The Shanghai Index returned to 3000 points, the Hang Seng Index rose 4.01%, and the Politburo meeting of the Central Committee released a heavy signal
Metro Express News On the last trading day of April, A-shares and Hong Kong stocks saw a surge in the market together. Among them, the Shanghai index closed up 2.41%, returning to the 3000-point integer mark, while the Shenzhen Component Index and the ChiNext Index rose by 3.69% and 4.11% respectively.
The increase in Hong Kong stocks was even more prominent. The Hang Seng Index closed up 4.01%, recovering the 21,000-point integer mark, and the Hang Seng Technology Index rose 10% intraday. The stock price of Alibaba SW, which had fallen sharply in the early stage, soared by 15%, and Tencent Holdings also rose by more than 12%.
The policy warm wind drives the stock market to continue to rise
Quantitative changes have led to qualitative changes, and successive warm winds of policies are driving the capital market to shed the chill and regain its vitality. On April 27, against the backdrop of the overnight U.S. stock market crash, the three major A-share indexes walked out of an independent rise. Among them, the ChiNext Index closed up 5.52%, the largest single-day increase in three years.
Behind the surge, Xi Jinping, General Secretary of the CPC Central Committee, President of the State, Chairman of the Central Military Commission, and Director of the Central Financial and Economic Commission, presided over the 11th meeting of the Central Financial and Economic Commission to study the issue of comprehensively strengthening infrastructure construction, and to study the central government since the 19th National Congress of the Communist Party of China. The implementation of decisions and arrangements at the meeting of the Finance and Economics Committee. Xi Jinping emphasized that infrastructure is an important support for economic and social development. It is necessary to coordinate development and security, optimize the layout, structure, function and development mode of infrastructure, build a modern infrastructure system, and lay a solid foundation for building a modern socialist country in an all-round way; Central Finance and Economics The committee is an important institutional arrangement for the Party Central Committee to lead economic work. All regions and departments must accurately understand the decision-making and deployment spirit of the Central Finance and Economics Committee, and jointly promote the implementation of the decision-making and deployment.
Yesterday, A and H shares rose together, which is also closely related to policy cohesion and management’s active response to market concerns. According to Xinhua News Agency, the Political Bureau of the CPC Central Committee held a meeting on April 29 to analyze and study the current economic situation and economic work, and to review the “National Talent Development Plan during the 14th Five-Year Plan”. Regarding the current epidemic prevention and control policies, macro policies, real estate, platform economy, and capital market, the meeting made important decisions and deployments and released a series of heavy signals.
Specifically at the stock market level, the meeting emphasized that it is necessary to respond to market concerns in a timely manner, steadily advance the reform of the stock issuance registration system, actively introduce long-term investors, and maintain the stable operation of the capital market. At the same time, a series of institutional constructions to attract long-term funds into the market have been accelerated recently. The China Securities Regulatory Commission said that it will promptly introduce relevant rules and regulations for personal pension investment in public funds, and encourage and support social security, pension, trust, insurance and wealth management institutions to allocate more funds to equity assets.
In addition, on the evening of the day before yesterday, China Securities Depository and Clearing Corporation Limited announced that from April 29, 2022, it will reduce the overall transfer fee for stock transactions by 50%. This also boosted market sentiment to a certain extent.
In response to the real estate market, the meeting pointed out that it is necessary to adhere to the positioning that houses are for living, not for speculation, support localities to improve real estate policies based on local conditions, support rigid and improved housing needs, optimize the supervision of pre-sale funds for commercial housing, and promote the real estate market. stable and healthy development.
The meeting also specifically mentioned “the introduction of specific measures to support the regulated and healthy development of the platform economy”, emphasizing the need to promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalized supervision, and introduce specific measures to support the regulated and healthy development of the platform economy. Affected by this, Alibaba, Tencent, Meituan W, Bilibili and other Chinese concept stocks collectively soared, and the Hang Seng Technology Index rose by more than 10% during the session yesterday.
Wang Sheng, chief strategist of Shenwan Hongyuan Securities, believes that the Politburo meeting clearly put forward “the introduction of specific measures to support the healthy development of the platform economy”. The development policy will be further clarified, and the rectification work of large platform companies is expected to be completed faster. For the capital market, this important information is also expected to give domestic and foreign investors a “reassurance”.
The rebound is expected to continue
Which species deserve attention?
The successive favorable policies ignited the bullish sentiment in the market. As of yesterday’s close, the Shanghai Composite Index rose 2.41% to 3,047.06 points, the Shenzhen Component Index rose 3.69% to 11,021.44 points, and the ChiNext Index rose 4.11% to 2,319.14 points; the two cities had a total turnover of 965 billion yuan, and northbound funds bought a net 4.246 billion yuan. On the disk, the sectors of the two cities rose across the board, with sectors such as education, home furnishing, automobiles, software, home appliances, and retail among the top gainers, while sectors such as medicine, nonferrous metals, brokerages, petroleum, chemicals, and lithium ore all rose; Metaverse, online games, hepatitis Concepts and other themes are outstanding.
In the opinion of Yang Delong, chief economist of Qianhai Open Source Fund, favorable policies are frequently issued, ranging from promoting consumption, pulling infrastructure, lowering reserve requirements, etc., to lowering stock transaction transfer fees, which is conducive to the restoration of market confidence and promotes the rebound of the broader market. Adhering to value investment at the bottom of the market and grasping the direction of benefits from economic transformation are crucial for market investment.
“A series of positive factors have gathered, and the investment value of the A-share market has become prominent.” Wang Hanfeng, chief strategist and managing director of CICC, said that sentiment indicators are “grinding the bottom”, stable growth direction has relative benefits, and the market has mid-line value; “Stable growth” has encountered “supply shocks”, the overall market valuation has dropped to a level similar to the historical bottom, the market has accumulated a long and large correction, the valuation is relatively low, and the market is in a short-term “grinding”. The bottom period”, the middle line already has value.
Caitong Securities said that looking forward to the next 1-2 quarters, the market is getting better and better, cherish the “cheap time” in the current bottom area, and A-shares are expected to welcome the counter-offensive moment of “Normandy landing” and “Infinite scenery at the dangerous peak”; gradually To meet the “big consumption” buying point, we have now entered the comfort zone of cost performance, odds and winning rates. Three levels of consumption can be focused on: 1. Post-real estate cycle (home furnishing, home appliances, consumer building materials); 2. Service consumption (social services, airports, consumer medical care, media advertising); 3. Traditional consumer goods (mass consumer goods, liquor , pigs, etc.). For “big finance” (banks, real estate), the short-term rise is too fast and too hastily, the stock game, the impact of events, and the twists and turns. However, the policy of stabilizing growth will be intensified, and the “big finance” market can still be expected, using the adjustment and layout of the fundamentals of high-quality targets.