China News Service, Beijing, February 7 (Reporter Chen Kangliang) China's A-shares continued their gains on the 7th (Wednesday), with all major stock indexes rising. Among them, the representative Shanghai Composite Index rose by more than 1% and successfully recovered the 2,800-point mark.
As of the close of the day, the Shanghai Composite Index reported 2829 points, an increase of 1.44%; the Shenzhen Component Index reported 8708 points, an increase of 2.93%; the GEM Index reported 1707 points, an increase of 2.37%.
Shen Zhengyang, an analyst at Northeast Securities, said that the recent continued rise in A-shares is mainly due to positive signals from policies, especially the increase in holdings of Central Huijin Investment Co., Ltd., which has boosted investor confidence and brought more funds into the market. Effectively blocking the negative feedback mechanism of the market.
Statistics show that the total transaction volume of the Shanghai and Shenzhen stock markets that day was approximately 1.02 trillion yuan (RMB, the same below), breaking through the 1 trillion yuan mark for the first time this year, and the market transaction volume has increased. In addition, northbound funds bought a net 1.684 billion yuan of A-shares throughout the day, including a net purchase of 959 million yuan through Shanghai Stock Connect and a net purchase of 725 million yuan through Shenzhen Stock Connect. Northbound funds have made net purchases for 7 consecutive trading days.
In terms of specific sectors, according to data from financial data service provider Flush, the rare earth permanent magnet concept sector and the superconducting concept sector rose by 5.19% and 3.85% respectively that day, ranking among the top gainers. In terms of individual stocks, XMC Technology and Jiuling Technology increased by 30%, while China Rare Earth and Guangsheng Nonferrous Metal increased by 10%.
Wang Liying, an analyst at Orient Securities, said that the performance of the rare earth sector was relatively impressive that day. On the one hand, it was because the sector had undergone major adjustments in the early stage and had the power to rebound from oversold conditions; on the other hand, it was because of recent signals from policy, especially from relevant departments. Recently, a notice was issued on the issuance of the first batch of total control indicators for rare earth mining, smelting and separation in 2024. The supply of rare earths has shrunk, but demand is still strong. The market expects that the prices of related products may rise, which will benefit the performance of related companies. (over)