Quick return?, Foreign capital grabs funds! Niuhui, the RMB skyrocketed by 600 points, with room for growth | economy | quick return
The A-share market exploded today. As of the close, both the Shanghai Composite Index and the Shenzhen Component Index have risen by over 2%, while the Shanghai Composite 50 Index has risen by over 3%.
On the market, there was a surge in demand, with financial and real estate stocks rising across the board, with over 4000 stocks in both markets rising.
At the same time, foreign investment has also responded very warmly to this positive news. Northbound funds strongly swept through the market, with a net purchase of 18.983 billion yuan throughout the day, reaching a new high for the year. Among them, Shanghai Stock Connect bought a net purchase of 9.879 billion yuan, and Shenzhen Stock Connect bought a net purchase of 9.105 billion yuan.
The reaction in the Hong Kong stock market has been more intense. Today, the Hang Seng Technology Index surged by over 6%, the Hang Seng Index rose by over 4%, and the State owned Enterprise Index rose by over 5%.
The real estate sector has exploded
Real estate stocks strengthened, with more than ten stocks including Jindi Group, Binjiang Group, and Xincheng Holdings hitting the daily limit.
On July 24th, the Politburo meeting pointed out the need to effectively prevent and resolve risks in key areas, adapt to the new situation of significant changes in the supply and demand relationship of China's real estate market, adjust and optimize real estate policies in a timely manner, implement policies tailored to the city, make good use of policy toolboxes, better meet the rigid and improved housing needs of residents, and promote the stable and healthy development of the real estate market.
Institutions generally expect to increase efforts to support the stable and healthy development of real estate in the future.
The collective strength of the large financial sector
Boosted by policies, the large financial sector has collectively strengthened. In terms of insurance, China Taiping Insurance rose the limit, while Ping An Insurance and China Life Insurance rose by over 6%.
Bank stocks rose along with Ningbo Bank up over 8%, while China Merchants Bank, Chengdu Bank, Postal Savings Bank, and others followed suit.
In terms of securities firms, Pacific Securities, Guohai Securities, and Shouchuang Securities have hit the limit up.
The automotive vehicle sector has risen
The automotive industry chain rose in the afternoon, with Changan Automobile, Yaxing Bus, Jiangling Automobile and others hitting the daily limit.
On the news front, the Politburo meeting mentioned the need to actively expand domestic demand, leverage the fundamental role of consumption in driving economic growth, expand consumption by increasing household income, drive effective supply through terminal demand, and organically combine the implementation of the strategy of expanding domestic demand with deepening supply side structural reform. To boost bulk consumption of automobiles, electronic products, home furnishings, and promote consumption of sports, leisure, cultural tourism, and other services.
Baijiu plate rose
Baijiu plate rose. Shede Liquor Industry's daily limit up, Shanxi Fenjiu, Laobaigan Liquor, Luzhou Laojiao rose by over 7%, while Jiugui Liquor, Wuliangye and others followed suit.
Guotai Jun'an Research Daily said that since 2023, the Baijiu scene has been continuously repaired. In the off-season, liquor enterprises have steadily promoted payment collection while increasing channel control and consumer cultivation. At present, the Baijiu sector is at a triple low point of undervaluation, low expectation and low position, and the stock price fully reflects the negative sentiment. Looking forward to the future, it is expected that the policy of stabilizing growth will continue, the margin of macro factors will be better and the horizontal comparative advantage of the plate will be highlighted, and the value of Baijiu is expected to return.
The RMB exchange rate skyrocketed by over 600 points
The RMB exchange rate rose sharply today, showing strong performance. The onshore Chinese yuan closed up 666 points against the US dollar at 7.1365 yuan, reaching a new high since July 14th.
"China's increased macroeconomic policies are expected to boost economic recovery, which is expected to stabilize and increase the RMB exchange rate," said Zhong Zhengsheng, Chief Economist of Ping An Securities.
According to a research report by Open Source Securities, based on recent economic and financial data, as well as policy statements, we believe that the domestic economy may have bottomed out, and there is limited room for market expectations to decline. The inhibitory effect on the RMB exchange rate may gradually decrease. In addition, according to the foreign exchange settlement and sales data in May, the current willingness of enterprises to settle foreign exchange is higher than that of foreign exchange sales, reflecting the relatively stable expectations of the foreign exchange market.
On the 21st, Wang Chunying, Deputy Director and spokesperson of the State Administration of Foreign Exchange, stated at a press conference on the first half of the year's foreign exchange income and expenditure data that foreign investors will continue to increase their holdings and steadily allocate RMB assets. We have the foundation, strength, and confidence to maintain the stable operation of China's foreign exchange market, and resolutely guard against the risks of large fluctuations in exchange rates.
