China News Service, January 25 (Xinhua) After multiple departments launched a favorable "combination punch", enthusiasm for A-share trading was ignited.
On the 24th, the Shanghai Stock Index rebounded in a V-shape and returned to above 2,800 points. On the 25th, A-shares continued to strengthen, and the Shanghai Stock Index returned to above 2,900 points. PetroChina rarely reached its daily limit.
Closing results of the three major A-share stock indexes on the 25th
As of the close on the 25th, the Shanghai Stock Exchange Index rose 3.03% to 2906.11 points; the Shenzhen Component Index rose 2% to 8856.22 points; the ChiNext Index rose 1.45% to 1720.78 points.
More than 4,800 stocks in the A-share market rose, with trading volume reaching 903.6 billion yuan throughout the day, and a net inflow of northbound funds of 6.294 billion yuan.
Concepts such as Chinese-headed stocks and Shanghai state-owned enterprise reform were among the top gainers.
Shenwan's primary industries rose across the board, with petroleum and petrochemicals, real estate, construction and decoration and other sectors leading the gains.
PetroChina's oil prices hit the daily limit for the first time since July 2015.
On the 25th, the industry sectors ranked among the top gainers.
On the 25th, the concept sector was the top gainer.
On the 25th, the stocks with Chinese prefixes were among the top gainers.
On the 25th, the top gainers in the real estate development sector
On the 24th, the relevant person in charge of the State-owned Assets Supervision and Administration Commission of the State Council stated at a press conference of the State Council Information Office that the effectiveness of market value management will be included in the assessment of the heads of central enterprises, and the heads of central enterprises will be guided to pay more attention to the market performance of the listed companies they control.
On the same day, Wang Jianjun, vice chairman of the China Securities Regulatory Commission, also said in an interview with the media, "We will further improve the quality evaluation standards of listed companies, highlight return requirements, and vigorously promote listed companies to better return investors through buybacks and cancellations, increase in dividends, etc."
Prior to this, the State Council executive meeting held on the 22nd emphasized the need to take more powerful and effective measures to stabilize the market and stabilize confidence.
On the 23rd, the China Securities Regulatory Commission held a party committee (enlarged) meeting and emphasized that "the stable operation of the capital market should be placed in a more prominent position", "vigorously improve the quality and investment value of listed companies" and "continuously enhance the inherent stability of the stock market."
In addition to "pointing out the direction" for the operation of the capital market, the central bank also predicted a "timely rain".
On the 24th, Pan Gongsheng, governor of the People's Bank of China, announced at a press conference that the deposit reserve ratio will be lowered by 0.5 percentage points on February 5 to provide the market with long-term liquidity of approximately 1 trillion yuan.
At the much-watched beginning of the year, the market interpreted it as the central bank issuing a "surpassing-expected" gift package.
On the 25th, Xiao Yuanqi, deputy director of the State Administration of Financial Supervision and Administration, stated at a press conference of the State Council Information Office that the implementation of the urban real estate financing coordination mechanism will be accelerated to achieve results.
In the near future, a relevant work deployment meeting will be held, requiring banks to take action as soon as possible. Under the leadership and coordination of the urban people's government, together with the housing and construction departments, they will make good use of the policy toolbox according to city policies to more accurately support the reasonable financing needs of real estate projects.
Yang Delong, chief economist of Qianhai Kaiyuan Fund, said, "This favorable policy is timely and provides policy support for the development of the capital market, which is expected to reverse the market's pessimistic expectations."
Ping An Securities also believes that the reform signals inject confidence into capital market investment, and the market is expected to get out of short-term troubles and return to the path of stable and healthy development.
It is beneficial to large and medium-sized enterprises with stable performance and standardized information disclosure.
"Considering that the overall market valuation after adjustment has been in a relatively extreme state, the CSI 300 Index is at the bottom level among the world's major market indexes, and both historical and horizontal comparisons have strong investment appeal." CICC's research report believes.
Regarding the market outlook, Yang Delong believes that as the national team’s increased funding for the market and the cumulative effect of favorable policies have driven the market to bottom out and rebound, investor confidence has been restored to a certain extent, and the market is expected to enter a bottoming and rebounding stage.
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