The A-share market is poised to further boost confidence

After the recent robust recovery of the A-share market, supported by a series of stronger-than-expected stimulus policies, increasingly confident investors are paying more attention to the stock market, whose upward momentum can be further strengthened by measures to support and through ongoing measures. optimizing China’s economic growth, industry experts said.

Preparations were made during the National Day holiday, which ended on Monday. The Shanghai Stock Exchange announced on Sunday that it would add an extra five minutes from 9:25 a.m. to 9:30 a.m. each trading day for designated trades. The new policy will take effect on Tuesday, the first trading day after the holiday.

As industry experts have explained, a designated trade is a step an investor must take between opening a new share account and starting to trade on SSE. the last few days and to facilitate trading efficiency once the market resumes, they said.

The upbeat market sentiment can be felt at stock brokerages. Major brokerages offered 24/7 online account opening and consulting services during the recent holiday. Sinolink Securities said the account opening appointments they received during the holiday were up 150 percent from a month earlier. Minsheng Securities said the number of daily requests to open stock accounts in the past seven days was four times higher than before the holiday.

To meet such growing demand, China Securities Depository and Clearing Co’s securities account platform and ID verification system resumed operations on Sunday and Monday.

Investor confidence was supported by the recent strong rebound in the A-share market. Since the batch of incremental policies was introduced on September 24, the Shanghai Composite Index gained 20 percent through the end of September, the Shenzhen Component Index rose 29 percent . The combined trading value of the Shanghai and Shenzhen stock exchanges hit a new single-day record of 2.6 trillion yuan ($370 billion) on September 30.

Laura Wang, chief China equity strategist at Morgan Stanley, said on Oct. 3 that Chinese stocks would gain another 10 to 15 percent on average if a new round of fiscal spending measures can be rolled out in the coming weeks.

At a press conference scheduled for Tuesday, officials from the National Development and Reform Commission, the country’s main economic regulator, will explain their measures to better implement the range of supportive policies launched in late September to advance the further economic growth and to optimize China’s economic growth. economic structure.

Yang Delong, chief economist at First Seafront Fund, said China’s 140 trillion yuan in household savings will provide more capital for the A-share market after the National Day holiday, providing more upward momentum for indices.

Hong Kong’s stock market growth has already outpaced that of the A-share market as the latter took more days off for the holiday, experts at Shenwan Hongyuan Securities said. A continued rise in the A-share market can therefore be expected in the short term to narrow the price gap with Hong Kong, they added.

Dai Kang, managing director of the development research center at GF Securities, said private equity funds have increased their exposure to the A-share market, which has just seen its strongest rebound in months. Chinese policymakers have cleverly used the timing of interest rate cuts by the US Federal Reserve to introduce stronger-than-expected support measures, he said.

Goldman Sachs upgraded its call on Chinese stocks to overweight, saying recent stimulus measures have bolstered confidence and valuations of Chinese stocks are below historical averages, while their earnings could improve further.

Qiu Xiang, joint chief strategist at CITIC Securities, said the current A-share market rally is mainly supported by reversed market expectations following innovative monetary policies and a relaxed tightening in the housing market announced at the end of September. A further market recovery can be expected, with companies showing rising earnings and those benefiting from a rebound in domestic demand offering more opportunities for investors, he added.

Also, analysts from Huafu Securities warned investors about the possibility of adjustments and fluctuations on the A-share market after it experienced a drastic increase. But the recent bull run is far from over. Overall growth will take longer, they said.