On September 25th, the three major A-share indices rose and then fell back. The Shanghai Composite Index increased by 1.16%, the Shenzhen Component Index increased by 1.21%, the ChiNext Index increased by 1.62%, the Beijing Stock Exchange 50 Index increased by 1.21%, and the total market turnover exceeded 1.16 trillion yuan. Over 4,100 stocks in the two markets rose.
In terms of market performance, the large financial concept led the gains throughout the day, with more than 10 stocks such as Tianfeng Securities, Guohai Securities, Yin Zhijie, Minmetals Capital, Xinli Finance, HaiDe Shares, COFCO Capital, Aijian Group, and HaiDe Shares hitting the daily limit. The media sector was also among the top gainers, with stocks like Zhi De Mai, Fushi Holdings, Zhongguang Tianze, Dian Guang Media, and Huaren Group hitting the daily limit. Stocks trading below their net asset value also showed strength, with stocks like Hai Xin Nengke, Zhongnan Shares, Yatai Group, and Financial Street hitting the daily limit.
Analysts believe that the press conference held by the State Council Information Office announced a package of financial policies to support the real economy, which is an obvious attempt to boost market confidence. The market's risk appetite is expected to continue to improve significantly, and a short-to-medium-term rebound in A-shares may be on the horizon.
Large Finance Leads the Gains
The large financial concept led the gains throughout the day, with more than 10 stocks such as Tianfeng Securities, Guohai Securities, Yin Zhijie, Minmetals Capital, Xinli Finance, HaiDe Shares, COFCO Capital, Aijian Group, and HaiDe Shares hitting the daily limit.
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In terms of news, on September 24th, People's Bank of China Governor Pan Gongsheng, Director of the State Financial Regulatory Administration Li Yunze, and China Securities Regulatory Commission Chairman Wu Qing introduced the situation of financial support for high-quality economic development at a State Council press conference, mentioning a number of significant favorable policies.
On the same day, the China Securities Regulatory Commission issued the "Opinions on Deepening the Reform of the Mergers and Acquisitions Market of Listed Companies," which mentioned guiding securities companies to increase their investment in financial advisory services, fully play the role of transaction matching, actively facilitate mergers and acquisitions transactions. Support listed securities companies to enhance core competitiveness through mergers and acquisitions, and accelerate the construction of first-class investment banks.
The surge in the large financial sector is related to the continuous improvement of the market environment and the acceleration of the return of incremental funds. Independent financial commentator Guo Shi Liang, when interviewed by our reporter, said that the large financial sector gathers market popularity and market funds, and stocks with low valuation and high dividends are more likely to be sought after by market funds. Once the market starts to warm up, the large financial sector is more likely to show active performance.
Looking ahead, "it is necessary to observe the average daily transaction performance of A-shares. If the average daily transaction volume of A-shares reaches over a trillion yuan, the market is still dominated by bulls," Guo Shi Liang said.
CICC stated that the current performance, valuation, and holdings of the securities sector are all at the bottom. Recently, the reduction of reserve requirements and interest rates has provided market liquidity, new policy tools have been created to support the development of the stock market (such as securities fund insurance company swaps, stock repurchase and increase re-lending, etc.), and the pace of mergers and acquisitions within the industry has accelerated. Attention should be paid to the rebound opportunities under the catalysis of merger and acquisition transactions, market improvement, and internal and external policies.Media sector leads gains
Broken net stocks fluctuate and strengthen, with Haining New Energy Technology, Zhongnan Shares, Yatai Group, Financial Street, and many other stocks hitting the daily limit.
In terms of news, on September 24th, the China Securities Regulatory Commission (CSRC) publicly solicited opinions on the "Guidance for Listed Companies No. 10 - Market Value Management (Draft for Comments)". Article 9 requires that companies with long-term broken net values should disclose plans for valuation enhancement, including objectives, timelines, and specific measures, and provide a special explanation of the execution of the valuation enhancement plan at the annual performance briefing.
The broken net rate is one of the important observation indicators in the A-share market. Cai Xin Securities believes that the cost-performance ratio of A-shares is now prominent, and medium to long-term funds are at a better time for allocation.
The media sector leads in gains, with Worth Buying, Fu Shi Holdings, Zhong Guang Tian Ze, Dian Guang Media, and Hua Wen Group hitting the daily limit.
In terms of industry, during the Mid-Autumn Festival, cinema and cultural tourism consumption continued to recover. According to Maoyan data, as of September 20th, the box office in September exceeded 1 billion yuan. The total number of screenings during the 2024 Mid-Autumn Festival exceeded 1.356 million, and the total box office exceeded 383 million yuan, setting a new record for the number of screenings during the Mid-Autumn Festival in Chinese film history.
In addition, some high-position stocks fell, with Datang Telecom and China Communications Real Estate staging a "sky floor" scenario, and Baodian Electric falling to the daily limit.
Seize the repair market
Today, the three major A-share indices continued to rebound, with the Shanghai Composite Index once recovering the 2900-point integer level during the session. Looking ahead, institutions are optimistic about the A-share rebound.
CITIC Securities believes that the joint press conference of the three financial regulatory departments on monetary policy and financial supervision at the State Council Information Office announced a package of financial support policies for the real economy, which is clearly intended to boost market confidence. For banks, the adjustment of existing mortgage loan interest rates has a negative impact on the pricing of bank assets, and it is also clear that the subsequent decline in LPR and deposit interest rates will have a neutral impact on bank interest spreads. The swap convenience tool increases the financing convenience of non-bank institutions and invests in the stock market in a targeted manner. The re-lending tool helps listed companies to repurchase and increase their holdings, and index-weighted stocks with good main body quality and liquidity have more operational space, and listed banks are expected to benefit directly.Founders Securities stated that the current monetary policy is taking the lead, and fiscal policy will take over to exert its strength. Market risk appetite is expected to continue to improve significantly. Coupled with the entry of incremental funds to reverse the situation of capital stock game, it is recommended to start a bullish mindset, actively seek opportunities for bottom layout, and grasp the repair market.
In terms of investment themes, Huajin Securities research report pointed out that a short-term rebound in A-shares may be coming. The financial real estate, technology, and core asset industries are expected to benefit.