China News Service, Beijing, February 21 (Reporter Chen Kangliang) China's A-shares rose on the 21st (Wednesday), and all major stock indexes ended in the red. The representative Shanghai Composite Index rose nearly 1%, achieving "six consecutive gains."
As of the close of the day, the Shanghai Composite Index reported 2950 points, an increase of 0.97%; the Shenzhen Component Index reported 8975 points, an increase of 0.79%; the GEM Index reported 1752 points, an increase of 0.36%.
Li Bingzhou, an analyst at Wanhe Securities, said that the recent continued rise in A-shares is mainly boosted by the positive capital market reforms, coupled with the emergence of more eye-catching economic data during the Lunar New Year, which has boosted investor confidence; in addition, from From a valuation perspective, after previous adjustments, the valuation of A-shares is still at a low level compared with major global capital markets, which makes the A-share market more attractive for investment.
According to statistics from financial data service provider Oriental Fortune, northbound funds made a substantial net purchase of A-shares that day, with net purchases of A-shares totaling 13.595 billion yuan (RMB, the same below) throughout the day, a new high since the end of July 2023; among them, through Shanghai stocks that day Net purchases were 9.641 billion yuan, and net purchases through Shenzhen-Hong Kong Stock Connect were 3.954 billion yuan.
In terms of specific sectors, most A-share sectors rose that day, with education, brewing and other sectors rising 5.68% and 4.2% respectively, leading the gains. In addition, financial sectors such as insurance and banking also performed well, rising 3.37% and 2.2% respectively. In terms of individual stocks, Ping An Bank rarely hit the daily limit (up 10%).
Yang Delong, chief economist of Qianhai Kaiyuan Fund, said that the strength of bank stocks is, on the one hand, favored by many funds because of its low valuation and high dividend yield; on the other hand, the recent market quotation rate of loans with a term of more than 5 years has been (LPR) may promote the growth of residential mortgage loans, which will be beneficial to the banking industry.
Recently, the People's Bank of China authorized the National Interbank Funding Center to announce the latest LPR: the LPR over 5 years was 3.95%, a decrease of 25 basis points from the previous month. This is the second decline in LPR over 5 years since June 2023, and it is the largest decline in LPR ever. (over)