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A-Share Market: 3200 Points Recovery and Sector Strengths Explained

The Chinese stock market closed on Wednesday morning. Today's A-shares opened low and then rose to recover the 3200 point mark. These sectors performed strongly as expected. Do you know why? If you're not clear, please watch carefully and patiently for three minutes, and I will explain it to everyone.

Firstly: Today's A-shares indeed opened low and tested the 3167 level, then opened low and rose to a high of 3237. The day's transactions amounted to 9,110, with a rise of 12 points to recover the 3200 point level. There were 3,400 companies rising and 1,700 companies falling, with 65 companies hitting the daily limit up. Today's Wednesday A-shares once again showed an active market with more gains than losses.

Secondly: Today's A-share market indeed saw these sectors show strong gains. Among them, the real estate sector led the entire market, with the real estate sector's volume increasing by more than 5% today, with many companies hitting the daily limit up. At the same time, the Sichuan sector also saw a wave of daily limit ups today, and mergers and acquisitions also showed strong gains. Of course, it is mainly the real estate sector that has driven the entire real estate industry chain, including steel, cement, banking, infrastructure, building materials, and other sectors to rise across the board. So, what exactly happened for these sectors to rise as expected?

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The first reason is this: In September, I repeatedly mentioned that I was optimistic about the reversal and rise of the real estate market. You know that I am optimistic about real estate. Or last Thursday and Friday, I also emphasized again that real estate would stabilize and rise again.

Sure enough, last night and this morning, two pieces of good news came. Good news 1: The State Council Information Office will hold a press conference tomorrow on promoting the stable and healthy development of the real estate market. Good news 2: Tianjin has canceled housing restrictive measures to further optimize real estate policies. Today, the real estate sector once again soared, leading the market to open low and rise high.

The second reason: On Monday night, the sector interpretation reminded all investors that the Sichuan sector has become the hot sector of the week. The reason is that the Sichuan sector also belongs to the state-owned enterprise reform sector. Sichuan has accelerated the pace of state-owned enterprise reform, bringing good news to the Sichuan sector, and the market is expected to rebound and rise further. So today, the entire Sichuan sector saw a wave of daily limit ups.

The third reason, mergers and acquisitions: The person in charge of the Shanghai Stock Exchange said that they will promote a batch of symbolic and high-quality industrial merger and acquisition cases to land as soon as possible. Mergers and acquisitions have always been the main line of the recent A-share market, but some are clear, while others are joining the camp one after another. Among them, the securities sector rose again today, mainly due to the rise of mergers and acquisitions, and other securities did not rise much. This is mergers and acquisitions.

Third: So the question is, is the A-share market stable now?

Firstly, today's dual-creation index fell by 1.5%, the ChiNext fell by 1.41%, the STAR 50 fell by 1.55%, and the Shenzhen Component Index fell by 0.51%, which means that the dual-creation index still needs to fill the previous gap, but the basic space is not much.

Secondly, today's micro-plate stock index rose by 1.24%, the CSI 1000 rose by 0.71%, and the Shanghai Composite Index rose by 0.4%, which means that some thematic stocks and weight stocks had an upward trend today. So today's individual stocks had more gains than losses.Finally, yesterday I anticipated that the A-shares would continue to decline today, finding support near 3157-3172, and would pull back to form a lower shadow line. This morning, we also mentioned that there was good news for the real estate sector. Today, A-shares opened low and rose high, which is basically in line with expectations. Therefore, recovering the 3200 point mark today would stabilize the market.

This week's A-shares have basically maintained a consolidating trend. Although the market fluctuates with gains and losses on alternating days, sectors with policy support have seen slight upward movements. So, there is no need to worry about the overall market recently, just focus on selecting good stocks. Last week, I reminded all my loyal followers again about real estate and China-affiliated stocks, which have once again delivered substantial returns.

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