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A-shares fluctuated and consolidated this week, with major stock indexes rising more than falling. The Shanghai Composite Index rose 0.37% to 2982.31 points for the week; the Shenzhen Stock Exchange performed slightly weaker, with the Shenzhen Composite Index falling 0.46% for the week, and the Shenzhen ChiNext Index falling slightly by 0.06%. The Shanghai Science and Technology Innovation 50 Index rose 4.33% for the week, and the Beijing Stock Exchange's Beijing Stock Exchange 50 Index rose 4.61%.

On Monday, the National Bureau of Statistics released a number of economic indicators for June or the second quarter, among which the total retail sales of consumer goods in June increased by only 2.0% year-on-year, so market sentiment was somewhat suppressed. On Tuesday, the central bank increased its actions in releasing liquidity, and A-shares performed well that day. On Wednesday, the stock index fluctuated and saw, with the Beijing Stock Exchange soaring alone, but the Shanghai and Shenzhen stock indexes fell. On Thursday, the situation was exactly the opposite, that is, the Shanghai and Shenzhen stock markets rose, while the Beijing Stock Exchange fell sharply.

A shares opened slightly lower on Friday, but the subsequent trend was quite good. By the close of trading, most major stock indexes turned positive, with only the Beijing Stock Exchange falling slightly.

Judging from the performance of A-shares in the past two weeks, it is relatively stable overall. A-shares are expected to maintain a consolidation pattern in the future. When the specific policy details related to "stabilizing growth" are released, A-shares may have the opportunity to rise. In terms of "stabilizing growth", I personally think that the policy will mostly focus on stimulating domestic demand, and investors are advised to focus on this point.

In fact, in my opinion, boosting consumption should not be just a short-term emergency measure, but should involve fundamental structural reforms, that is, we should establish a mechanism to ensure that the proportion of consumption in GDP is "permanently" increased.

Investors may wish to pay attention to this month's LPR rate next Monday to see if it will be "unexpectedly" lowered. Although the LPR rate can be inferred from the MLF rate in the past, the central bank has actually made some innovations in interest rate control tools recently, and this LPR rate fixing should be a good observation point.

Investment is risky, independent judgment is important

This article is for reference only and does not constitute a basis for buying or selling. You should bear the risks of entering the market at your own risk.

Cover image source: Photo by Liu Guomei of Daily Economic News (file photo)

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