Securities Times: A-shares Bottom Out and Rebound
On January 24th, A-shares experienced a rebound after hitting a low. The Shanghai Composite Index increased nearly 2%, reaching over 2800 points. Additionally, the Shenzhen Component Index and GEM Index both strengthened. According to the closing data, the Shanghai Composite Index rose by 1.8% to 2820.77 points, the Shenzhen Component Index rose by 1% to 8682.19 points, and the GEM Index rose by 0.51% to 1696.19 points. The Shanghai Composite 50 Index also rose by 1.54%.
The total turnover for the two cities was 766.9 billion yuan, marking an increase of more than 60 billion yuan from the previous day. In terms of industry performance, securities firms, real estate, and insurance sectors were among the top performers. Retail, textile and clothing, steel, petroleum, and coal sectors also experienced strengthening. Shanghai local stocks and China Special Appraisal, and Internet Financial Concepts were active.
Guosheng Securities highlighted accumulating positive factors, including potential macro and liquidity policies, market value management, and the increased occurrence of net-breaking stocks. With these internal and external factors, the market may experience a long window of opportunity.
In terms of investment opportunities, the banking sector’s valuation is expected to recover following the deposit reserve ratio (RRR) cut implemented at the beginning of the year. Pan Gongsheng, Governor of the People’s Bank of China, announced the RRR cut, aiming to provide long-term liquidity of about 1 trillion yuan to the market. Additionally, the market will witness the implementation of a more investor-focused capital market.
There are also policy improvements for the real estate sector, which can be seen in the commercial property loan policy announced on January 24th. The policy details requirements for commercial banks in managing commercial property loan business standards and quotas. This could provide opportunities for the sector.
In addition to these developments, other market-moving news included announcements around the personal pension system, lower limits on first-home loan interest rates, and chip manufacturers’ price increases.
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