After last week's sustained decline, A-shares ushered in a rebound. On October 14, the Modern Express reporter learned that A-shares bottomed out and rebounded throughout the day, as of the close, the Shanghai Composite Index rose 2.07%, the Shenzhen Component Index rose 2.65%, the ChiNext Index rose 2.6%, the Beijing Stock Exchange 50 Index rose 6.61%, and the turnover of the Shanghai, Shenzhen and Beijing markets was 1,649 billion yuan, an increase of 62.2 billion yuan from the previous day. More than 5,000 stocks rose in the market.
△The three major A-share indexes collectively closed higher
The reporter saw that almost all the industry sectors rose, and the stocks of Huawei's industrial chain broke out in the afternoon, with more than 40 shares up and down. Military equipment, cross-border payment, and chemical debt concept sectors were among the top gainers throughout the day.
On the disk, Huawei's concept stocks set off a tide of daily limits in the afternoon, Airong Software 30CM daily limit, Yusys Technology, Runhe Software, Dongtian Micro, Robotec, National Technology and other batches harvested daily limits. Military stocks rose intraday, with the Northern Changlong, China Avionics, Great Wall Military, and Refining Aviation. The concept of chemical debt stocks rose sharply at the open, and more than 10 stocks such as Mengcao Ecology, Everbright Jiabao, Cinda Real Estate, Shaanxi Guotou A, and Yinbao Shanxin rose to the limit. Cross-border payment concept stocks have been repeatedly active, such as Kelan Software, PetroChina Capital, Qingdao Kingking, etc. On the whole, individual stocks rose more and fell less.
On the news side, on the 12th, Minister of Finance Lan Foan said at the press conference of the State Council Information Office that it is planned to increase the debt limit of a larger scale at one time, replace the stock of implicit debts of local governments, and increase efforts to support local governments to resolve debt risks.
△On October 14, the People's Bank of China launched a reverse repurchase operation of 19.5 billion yuan in the form of fixed interest rate and quantity bidding
On October 14, the central bank announced that in order to maintain reasonable and sufficient liquidity in the banking system, it carried out a 7-day reverse repurchase operation of 19.5 billion yuan in the form of fixed interest rate and quantity bidding, with an operating interest rate of 1.50%. In addition, the data showed that there was no reverse repurchase expiration on the same day, so a net investment of 19.5 billion yuan was placed in the open market on the same day.
According to the CITIC Securities Research Report, the counter-cyclical adjustment of fiscal policy has been strengthened, and the credit risk of the two major sectors of the bank (urban investment and real estate sector) that is systematically important has been alleviated, which will help improve the stability of the bank's net assets and have a positive effect on the valuation of bank stocks. Although the capital replenishment of state-owned banks has a dilution effect, it is expected to be controllable, and from a long-term perspective, it is expected to consolidate the sustainable development capacity of large state-owned banks. On the whole, the meeting of the Ministry of Finance on October 12 was substantially positive for bank stocks, and the certainty of the sector was further enhanced.
Meng Lei, a China equity strategy analyst at UBS Securities, believes that the market action brought about by policy easing in the A-share market still exists in the short term, but the upward slope of the market may gradually slow down, and the two-way volatility will increase. From a policy point of view, policy support, including real estate, monetary, and capital market policies, is in the stage of gradual implementation, and the details of fiscal policy are yet to be announced, so the market sentiment recovery momentum brought about by policy easing still exists. From a liquidity perspective, a large number of over-the-counter funds (including newly opened individual investors, newly subscribed public funds, foreign capital that was previously underweighted in China's stock market, and medium- and long-term funds that have not yet entered the market) are waiting to enter the market.
Modern Express/Modern + reporter Xie Qianqian comprehensive arrangement
(Image source: Wind platform, People's Bank of China official website)