Huijin's increase in holdings boosted confidence, and the three major A-share indices collectively rose

2023-10-13

On Thursday, the A-share market rebounded after a high opening, with all three major indices rising slightly. As of the close, the Shanghai Composite Index rose 0.94% to 3107.90 points; The Shenzhen Composite Index rose 0.83% to close at 10168.49 points; The ChiNext Index rose 0.76% to close at 2019. Individual stocks rose more than fell less, with over 3200 individual stocks in the Shanghai and Shenzhen stock markets rising. In terms of funds, the total transaction volume of the Shanghai and Shenzhen stock markets was 831.3 billion yuan, a decrease of 7.5 billion yuan compared to the previous trading day. Northbound funds bought a net of 6.616 billion yuan throughout the day, ending the four consecutive trading days of net selling trend, with Shanghai Stock Connect buying a net of 4.842 billion yuan and Shenzhen Stock Connect buying a net of 1.773 billion yuan. On the market, the large financial sector was collectively boosted by the increase in holdings of the four major banks by the Central Huijin Company; New energy track stocks rebounded, with lithium mining stocks leading the way, while Jiangte Electric and Yongxing Materials rose their limit; Wind power concept stocks rose in the afternoon. In addition, pharmaceutical stocks have been repeatedly active, with multiple stocks such as Haichen Pharmaceutical and Baihua Pharmaceutical rising their limit. In terms of decline, the concept of lithography machines has fallen into adjustment, with gaming, media, oil and gas sectors leading the decline. The big financial sector collectively pulled up yesterday, while the big financial sector collectively pulled up. In the banking sector, Bank of China and Ruifeng Bank rose by over 3%. In the insurance sector, China Pacific Insurance and China Life Insurance rose by over 4%. In the securities sector, China Galaxy and Dongfang Securities ranked among the top performers. In terms of Hong Kong stocks, the banking sector also ranked among the top performers. As of the close, China Construction Bank rose by over 5%, while Industrial and Commercial Bank of China and Agricultural Bank of China rose by over 4%. On the evening of October 11th, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank collectively announced that Huijin Company plans to continue to increase its holdings in the four major banks in the secondary market in its own name within the next six months. CITIC Securities stated that Huijin Company's increase in its holdings in the four major banks may be based on two considerations: firstly, considering stabilizing investor confidence and driving more incremental funds into the market in the context of the recent sluggish overall volume and price performance of A-shares; The second is that the unfavorable factors of investment in the banking sector are gradually eliminated, and high-quality banks are entering a phase of gradual allocation. In terms of sector investment, CITIC Securities suggests focusing on real estate credit risk mitigation and the implementation of the urban investment bond model in the next stage. Huatai Securities believes that this increase in Huijin's holdings in the four major banks is seen by the market as an important policy signal and is expected to boost the overall market situation of the banking sector. After various increases in Huijin's holdings, the banking sector index is expected to rebound within 1 to 3 months and outperform the overall market performance. New Energy Circuit Rebound Yesterday, new energy circuit stocks rebounded, with lithium mining stocks leading the way, while Jiangte Electric, Yongxing Materials, and China Mining Resources rose their limit. Wind power concept stocks rose in the afternoon, while Taisheng Wind Energy and Dongfang Cable rose by over 5%. In terms of futures, the main contract for lithium carbonate rose the limit, up 6.97%, to 164950 yuan/ton. Guolian Securities believes that from a supply side perspective, the production of salt lakes in the northwest region may be affected after entering winter. From the demand side, both the power batteries of new energy vehicles and the lithium batteries for energy storage have experienced rapid growth, providing strong demand support for the entire lithium carbonate industry. In terms of wind power, since September this year, the construction of multiple domestic offshore wind power projects has been promoted. According to the latest move

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:Shanghai Securities Daily

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