Bull Market? A-Shares Signal Counterattack; 3 Opportunities to Explode Soon

Following the recent press conference held by the State Council Information Office,the A-share market has responded positively.On September 27th,the market once again witnessed a widespread rally,with over 5,200 out of more than 5,300 A-shares closing higher.Trading volume also broke through the trillion mark once again,setting a new phase high.Against this backdrop,the hashtag #A-shares# has once again topped the trending list on Weibo.

However,the consecutive surges in the A-share market have also raised concerns among some investors,with the core focus mainly on the market's subsequent sustainability.So,how will the A-share market perform in the future,and how should one position themselves?

A-shares launch a full counterattack

On September 27th,the A-share market continued to move upward,with the ChiNext Index surging by more than 10% at one point,attracting market attention.In terms of sectors,almost all 31 major industries under the Shenwan classification closed higher,with the computer,food and beverage,real estate,non-bank finance,and pharmaceutical and biological sectors performing brightly,with index gains all above 5%.Several securities stocks,including CITIC Securities and Oriental Fortune,hit their upper limit.

Interestingly,under such strong buying,the Shanghai Stock Exchange's trading system experienced delays,with many investors reporting that after the market opened,the Shanghai Stock Exchange's stock trading system was unable to sell or cancel orders.Wind also showed that from around 10 am to 11 am,the Shanghai Composite Index trend was almost a straight line.

Looking at the time node,A-shares have surged for three out of the last four trading days.In terms of news,on the 24th,the State Council Information Office held a press conference,where People's Bank of China Governor Pan Gongsheng made an important speech.

In response,an investor posted,"Before,it was a retaliatory rebound for one day,then a one-day trip.Yesterday (the 24th) was a volume rebound + multiple favorable policy support...Just for today (the 25th) not to be a one-day trip,the long-awaited bull market this time may really be coming."

Research institutions also basically hold this view.For example,Dongxing Securities' research report pointed out that policies were introduced in a combination of punches,covering market attention to reserve requirement ratio reduction,existing mortgage interest rate and down payment ratio reduction,and central bank policy interest rate adjustment,as well as unexpectedly proposing new monetary policy tools to support the stability of the stock market,giving the capital market more development space to a certain extent.China Merchants Securities also believes that the policies of this round of press conferences exceeded expectations,especially with significant "real money" support for the capital market policies.

Huafu Securities stated,"Finance further supports the real economy,and A-shares sound the counterattack horn." Huaxin Securities also stated that the policy combination exerts force,marking a change in the attitude and determination of the higher-ups,confirming the rebound trend before the (National Day) holiday.However,Huaxin Securities also pointed out that a reversal still requires fiscal incremental follow-up.

In the short term,there are three major directions.In terms of specific configuration directions,a number of research institutions generally pay high attention to three major directions,which correspond to the strong sectors in the market recently.

The first one is the non-bank financial sector.In the view of Dongxing Securities,starting from the perspective of liquidity improvement,the policy aims to solve the market liquidity problem,and the most direct beneficiaries are securities and insurance companies.With leverage and market expectations,this type of asset should be the first choice for market configuration at present.

Bohai Securities also pointed out that based on the expectation of incremental funds entering the market through securities,insurance,and fund companies,looking at the holding preferences of these three types of institutions in the second quarter of this year,finance is one of their main configured sectors.Therefore,pay close attention to the investment opportunities in the financial sector under the entry of incremental funds.

China Merchants Securities pointed out that the recent "merger and reorganization fever" also benefits securities and other large financial sectors,which may bring good opportunities to the sector.It is reported that the merger and reorganization of Guotai Junan and Haitong Securities are still in progress,Guoxin Securities has announced a plan to issue shares to purchase the control rights of Wanhe Securities,and several securities companies such as Guolian Securities,Western Securities,Changjiang Securities,and Zheshang Securities have also had related merger and reorganization matters in recent times.

The second is the direction of policy efforts,such as real estate and its industry chain.Wanlian Securities pointed out that the current real estate industry's fundamentals are still fluctuating at a low level.The policy continues to exert efforts from both the supply and demand sides,aiming to stimulate market demand and resolve the risks in the real estate industry."On the demand side,reducing the down payment ratio for the second house,lowering interest rates to further guide the reduction of new loan interest rates,and reducing the interest rates of existing mortgages to reduce the burden of residents' loan repayments will help to further stimulate market demand; on the supply side,extending the term of two real estate financial policy documents,continuing to support real estate company financing,and supporting the acquisition of real estate company's existing land will help to further alleviate the financial pressure on real estate companies." Wanlian Securities said,"We expect that under a series of policy promotions,the industry's fundamentals may improve marginally in the short term,and it is still necessary to continue to pay attention to the performance of the industry's transaction volume and housing prices.In terms of the market,it is suggested to pay attention to the beta trend of the real estate industry chain driven by policy in the short term."

In terms of specific configuration,Everbright Securities suggests paying attention to two main lines.The first is the stable leading real estate companies with comprehensive development capabilities in areas,which have the opportunity to participate in the urban renewal of super large and special large cities,and the market share is expected to increase,such as China Merchants Shekou,Poly Development,China Jinmao,China Overseas Development,Yuexiu Property,Huafa Shares,and Binjiang Group.The second is the real estate companies that have taken the lead in deploying multiple tracks,have rich existing assets,and have core competitiveness in the commercial real estate track,such as China Resources Land,Longfor Group,and Xincheng Holdings.

The third is consumer companies.In the view of Hualong Securities,the introduction of this policy helps to reduce mortgage expenses,promote the expansion of consumption and investment,and related industries are expected to benefit.

Dongxing Securities also said that reducing the interest rates of existing mortgages will play a certain role in the recovery of residents' consumption.Large consumer companies represented by white spirits,medical beauty,and daily consumer goods imply a high level of pessimistic expectations,and the industry valuation is at a historical low,with a low valuation level and relatively abundant cash flow.With the improvement of fundamentals and liquidity,the valuation is expected to rise.