A-Share News: Policy Green Lights Boost Stock Market

Friends, it's really gone mad. Today's news broadcast once again mentioned the confidence of Chinese assets and foreign capital in China's economy.

Can you imagine that in order to continue the stock market trend, policies have almost all been given the green light to keep things smooth?

This would have been unthinkable in the past. After the market soared, to prevent the stock market from going crazy, cooling measures were taken early on. Now, the market has risen from 2700 points to 3300 points in just five trading days, which is already crazy enough, right? Not only is there no cooling, but it's still adding fuel to the fire, and the intention is quite obvious.

The rise of the stock market is not the ultimate goal. Increasing the wealth effect in society is what everyone is asking for. A bull market in stocks can basically solve most problems because more than 200 million stock investors and more than 700 million fund investors basically cover the wealth allocation needs of every household in China.

Therefore, it is very crucial and necessary for the A-share market to have a bull market trend. It is an irresistible trend and an undeniable fact. After all, the last bull market was in 2015, and it has been almost ten years since then.

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Before the market opens on the 8th, there are several strong assists for the market, which will greatly promote the sentiment of tomorrow's A-share market. Let's talk about my own views and opinions:

1. The strongest assist is coming. CITIC Securities and several other securities firms announced that the trend of large-scale deposit migration is unstoppable!

How hard can institutions work to introduce incremental funds to A-shares?

Major securities institutions did not rest during the National Day holiday and worked overtime to open accounts for new investors. China Securities Depository and Clearing Corporation resumed work early for review, and the Shanghai Stock Exchange extended the acceptance time for designated trading instructions. All these are to allow investors to enter the market as soon as possible.

This would have been unthinkable in the past, but these are facts. If such a market is not a bull market, then what is the significance of the efforts of so many departments?So, there is no doubt that the current market is in a bull market, and it is also an officially recognized bull market trend.

Tonight, major brokerage firms such as CITIC Securities and Huatai Securities once again issued announcements, stating that some banks will support third-party transfers as early as 7:30 am tomorrow, whereas the previous transfer time between banks and securities was around 9 am.

In order for everyone to transfer money into their securities accounts in advance and prepare for buying stocks, brokerages and banks have also given the green light for everyone, which is really unexpected.

As the first trading day after the National Day holiday, tomorrow is likely to see the first peak of bank-securities transfers, and the large-scale movement of deposits is really coming.

In the past few years, the real estate market has started to decline, the stock market has been sluggish, consumption has downgraded, and residents' savings have grown abnormally. What is the reason?

The main reason is that people have money in hand but no good investment direction, leading to a gradual loss of confidence. Because everyone cannot see hope, they dare not spend money and only want to save it.

Now that the stock market is starting to rise, with the effect of making money, savings deposits will automatically move, and everyone is willing to take out their money to invest in the stock market, willing to go out for tourism and consumption, and willing to improve their housing. Overnight, the economy has begun to have hope for recovery.

I don't know if everyone will have such a feeling, but I think many people have actually started to do so.

2. It's time to compete in speed. Will some brokerages advance night market entrustment, and will October 8th make history?Earlier, it was observed that the securities firms have advanced the time for bank-broker transfers. Tonight, some securities firms have also moved up the night market order submission time. The so-called night market orders actually refer to the ability to place orders for the second trading day after the clearing process on the first trading day's evening. This is because the A-share market operates on a principle of price priority and time priority for trades. At the same price, the earlier the order is submitted, the higher the likelihood of execution.

For now, the night market order submission has only been moved up for today, primarily to cope with the first trading day after the holiday. It is unclear whether this early submission will continue in the future.

From this, it can be seen that everyone is fully prepared for tomorrow's trading. Today, the three major exchanges in Shanghai, Shenzhen, and Beijing conducted a collective full-network test. Most securities firms have advanced their bank-broker transfers, and some have also moved up their night market orders. The goal is to allow funds to enter the market earlier.

Looking at it from another perspective, it seems there is no intention of giving the opportunity for funds that missed the boat to get on board. Tomorrow, the A-share market may indeed create history again, and it is very possible that the market will open and close at the same time.

The atmosphere has already been built up to this point. If the short positions are not blown out tomorrow, it would not match all the homework done in advance tonight, which can also be considered another strong assist.

3. Today, the evening news broadcast mentioned the confidence in China's economy again. What signal does this release?

Before and after the holiday, the evening news broadcast has mentioned Chinese assets. On the last trading day before the holiday, the A-share turnover set a historical record, and the evening news broadcast mentioned the stock market's sharp rise.

During the National Day holiday, Goldman Sachs and Morgan Stanley both raised their expectations for the A-share market target. Tonight, the evening news broadcast once again mentioned that everyone is full of confidence in Chinese assets and the Chinese economy.

One can imagine, if the current stock market is unhealthy, if the current bull market is not recognized, would the evening news broadcast report so frequently?

We have seen the People's Daily speak up for the A-shares, and the evening news broadcast mentioned that people are confident in China's economy. This indicates that our main task now is to keep the stock market rising.At this point, many funds that have missed out are quite anxious, looking everywhere for bearish news and using various technical analyses to believe that the market will pull back after a significant rise. They often overlook the essence of the market. At this time, one should not focus on technical analysis but rather on the strength of policies, the volume of funds, and the confidence and sentiment in trading.

During a bear market, technical analysis can be used to help minimize losses, but during a bull market, it should be discarded because it might lead to less profit or even the risk of missing out. At least in my view, I believe that the current policies recognize the significant rise in the stock market. The favorable view of foreign capital on A-shares has also been reported by the news broadcast, which is the strongest voice, aimed at letting the global capital know that China's economic recovery is full of hope and confidence. Chinese assets, after all, lead global assets and have become the most valuable assets globally.

In the past few years, the Federal Reserve has harvested the global market's "leeks," and now that the Federal Reserve has lowered interest rates, it needs a valuable market to absorb the global market's funds. We cannot allow foreign capital to easily bottom-fish our high-quality assets. We need to initiate a bull market surge to allow our own people's wealth effect to return first.

Perhaps many people still feel that they are at a loss, but as long as they are on the road to recovery, it proves that everyone's wealth is gradually being restored. If they can eventually make a profit, it means that wealth has grown.

Finally, for the A-share market after the holiday, I mainly have three points:

First, the significant rise in A-shares on October 8th will inevitably create history again, and tomorrow will be a day of widespread gains. Most people can hold still and wait;

Second, on October 9th, the market will welcome the funds of new investors who opened accounts during the 7-day National Day holiday for the first time. This is another increment of funds. It is expected that the market will not pull back immediately after the significant rise, and the market on the 9th will continue to rise;

Third, starting from October 10th, it is expected that the market will experience violent fluctuations. The purpose of the fluctuations is to wash the market and continue to absorb new funds entering the market, and ultimately, the overall market will reach a new high in the next round.So, in the short term, after the 10th, it may be necessary to pay attention to the possibility of significant market divergences, but that is not the end.