Stock Indexes Rebound in Afternoon Trading, LPR Rate Falls
Yesterday, the Shanghai Stock Index pulled up in the afternoon, while the Shenzhen Component Index and the ChiNext Index stopped falling and rebounded in late trading. As of the close, the Shanghai Stock Exchange Index rose 0.42% to 2922.73 points, the Shenzhen Component Index rose slightly by 0.04% to 8905.96 points, the ChiNext Index fell slightly by 0.01% to 1746.18 points, and the BSE 50 Index rose by 2.03%. The combined turnover of the two cities was 789.5 billion yuan, with a slight outflow of funds in the northbound market.
Guosheng Securities said that the 2024 index adjustments will have a significant impact on market sentiment. However, recent rebounds have stabilized market sentiment, but the index has not lifted its short structure, indicating that the index may enter a consolidation cycle in the short term. The recent 5-year LPR reduction indicates that monetary policy will continue to be loose and will have limited impact on A-shares.
On the investment opportunities side, the 5-year LPR fell more than expected, which is seen as a positive signal for supporting entities and boosting market confidence. This has created better opportunities for sector valuation repair, especially in the banking sector. There have also been positive developments in research on brain-computer interface technology and the accelerated construction of heavy truck power swap stations.
Other market-moving news includes the implementation of the quantitative transaction reporting system by the Shanghai and Shenzhen Stock Exchanges, the establishment of the real estate financing coordination mechanism, the reduction in the first-time home loan interest rates in first-tier cities, and the development of the “cross-border e-commerce + industrial belt” model in Shenzhen. Additionally, Huawei released a new data lake solution and new all-flash products, while EHang Intelligent aims to promote low-altitude economic commercial operations.
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