Shanghai and Shenzhen rose 35% in 10 days. Despite a slight decline, market Wall Street veteran Jeff deGraaf is still optimistic about the rising prospects of China's A-shares, predicting an increase of more than 50%. Investors who have sold a large-scale China Stock hedge fund will regret it.
After the shock adjustments in the first three quarters and the short-term surge in the past half month, we remain cautiously optimistic about the judgments on the A-share strategy for 2024 recently released by multiple brokerages. In terms of specific configuration, the “dumbbell strategy” that takes into account both flexible growth direction and high-dividend dividend sectors has been unanimously recognized. The A-share market recovery has slowed down, and the incremental financial market outlook is highly anticipated.
Last week, Chinese assets rose across the board. The RMB has appreciated sharply. A-shares, Hong Kong stocks, and Chinese concept stocks have surged. Hedge funds have poured in first, and long-term funds may have to increase their positions in the future. Global funds have fully increased their positions in Chinese stocks. Choice data shows that last week, the net inflow of stock ETFs exceeded 55 billion yuan, and the net inflow of main funds in the Shanghai and Shenzhen stock exchanges exceeded 34 billion yuan.
On September 24, the central bank, the State Administration of Financial Supervision, and the China Securities Regulatory Commission introduced financial support for high-quality economic development and published combined benefits, igniting enthusiasm for long-term investment in the capital market. On September 25, A-share reached a five-month high with trading volume exceeding 1.16 trillion yuan.
On September 24, the A-share market exploded, with the Shanghai Composite Index soaring more than 4%, the largest single-day increase since 2021; the ChiNext Index soaring more than 5%, the second largest single-day increase since 2019. The Shenwan primary industry index rose across the board and multiple sector indices are increasing by more than 5%. Some institutions believe that the current A-share market may have bottomed out, and recommend actively paying attention to oversold low-valuation and steady growth targets.
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