China News Service, Beijing, November 11 (Reporter Chen Kangliang) China's A-shares strengthened on the 3rd (Friday), and major stock indexes all rose. Among them, the representative Shanghai Composite Index has risen for two consecutive weeks, with a cumulative increase of 3.1%.
As of the close of the day, the Shanghai Composite Index was reported at 3030 points, an increase of 0.71% on the day; The Shenzhen Component Index was reported at 9853 points, an increase of 1.22%; The GEM index was reported at 1968 points, up 1.47%.
In terms of specific sectors, most of the A-share sectors rose on the day. According to data from financial data service provider Oriental Wealth, the motor and semiconductor sectors rose 4.65% and 4.36% respectively, leading the gains.
Shen Zhengyang, an analyst at Northeast Securities, said that the overall improvement of A-shares recently is mainly due to the improvement of the external environment. With the Federal Reserve suspending interest rate hikes, the peripheral stock markets have generally risen, and there has been a net inflow of northbound funds, which is conducive to the improvement of market risk appetite and is good for A-shares.
The Federal Reserve recently announced that it will keep the target range for the federal funds rate unchanged at 5.25% to 5.5%. This is the second consecutive pause in interest rate hikes by the Fed since the start of the current rate hike cycle in March last year. After the news was released, the three major indexes of the U.S. stock market rose collectively, and the yield on U.S. Treasury bonds retreated.
Looking ahead, Song Yiwei, an analyst at Bohai Securities, believes that although the Fed said that it may still tighten monetary policy further in the future, the market expects that the Fed will most likely continue to pause interest rate hikes in December, which is good for market liquidity. In China, the overall economic recovery momentum has taken shape. Recently, China announced an increase in the issuance of 12 trillion yuan of treasury bonds in 2023 to consolidate the positive trend of economic recovery and improve the performance of listed companies. Taking into account various factors, the A-share market is facing upward opportunities. (ENDS)