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On July 26, the market rebounded throughout the day, with the Shenzhen Component Index leading the gains. As of the close, the Shanghai Composite Index rose 0.14%, the Shenzhen Component Index rose 1.45%, and the ChiNext Index rose 0.92%.

In terms of sectors, home appliances, automobile disassembly concepts, commercial aerospace, and complete vehicle sectors led the gains, while banks, photovoltaic equipment, and ST sectors led the losses.

Overall, more stocks rose than fell, with more than 4,400 stocks rising in the entire market. The turnover of the Shanghai and Shenzhen stock markets today was 606.1 billion, an increase of 17.4 billion from the previous trading day.

Today, A-shares experienced the most decent general rebound this week. Even the Shanghai Composite Index, which was dragged down by the decline of heavyweight stocks, turned positive at the end of the trading day. This shows that with the continuous support of large funds this week, the market's downward momentum has been gradually digested and the sentiment has also turned from cold to warm.

From the market perspective, there are two "unexpected" details that seem to suggest that short-term change signals have appeared:

First, the most core dividend assets experienced a compensatory decline.

Second, whether it is the home appliance sector that led the market today or the short-term hot stocks, the strength is very online.

also,Near the end of the trading day, many CSI 300 ETFs increased their trading volume again, with the help of the "national team", the index and individual stocks strengthened across the board. Let's take a look at the details below.

Core dividend assets rebounded
China Mobile fell more than 4%

Speaking of dividend stocks, investors may still have the impression of the recent easy-win situation of A-shares "YYDS" (Y-bank, Y-operator, D-electricity, S-oil and coal).

ActuallyAs the coal sector fell back ahead of schedule, the dividend index has been adjusted for a period of timeHowever, the repeated new highs of core stocks such as China Mobile, Industrial and Commercial Bank of China, Agricultural Bank of China, China National Offshore Oil Corporation, and Yangtze Power have temporarily obscured this reality - or in other words, dividend assets are also rushing to the top.

Today,The most resilient and core dividend assets finally made up for their losses.

Data shows that among the 10 A-share stocks with the largest market capitalization, only CATL closed higher, while China Mobile, Industrial and Commercial Bank of China, Agricultural Bank of China and others all recorded large declines.

On the news front, after the six major state-owned banks collectively announced a reduction in deposit rates, on July 26, China Merchants Bank and Ping An Bank, two joint-stock banks, successively issued announcements to follow suit and reduce deposit rates. Zhou Maohua, a macro researcher at the Financial Markets Department of Everbright Bank, believes that judging from the current net interest margins of other large state-owned banks, the deposit market and the interest rate levels of the financial market, it is expected that more banks will continue to follow suit, expanding space for financial institutions to further give up profits to the real economy.

Some analysts pointed out that the current market is dominated by stock games, and the siphoning caused by group dividend assets has caused liquidity problems for growth stocks. Therefore, the recent Science and Technology Innovation Board, ChiNext and other indices have continued to fall.

Today's market is completely opposite to the previous ones, which can be understood as an important signal of a change in the market, namely the so-called "when a whale falls, all things come to life". After that, the large-cap and small-cap styles are expected to switch.

According to China Securities Journal, a source revealed that recently, institutions that seek absolute returns have started to sell large-cap stocks in order to lock in profits. Since the beginning of this year, their gains on these stocks have been very impressive, and they may have achieved their annual targets to a certain extent. Judging from the list of the top ten shareholders of these large-cap stocks, there are indeed some such institutions hidden among them.

Judging from the recent market, the correction of dividend assets often corresponds to the rebound of other oversold sectors. However, it seems a little early to assert that the dividend market has ended based on today's performance alone.

Home appliance and automobile industry chains surge
Short-term sentiment warms up

From opening to closing, sectors with the word "home appliances" in their names were far ahead in terms of growth; at the same time, sectors such as automobile dismantling, automobile services, and automobile assembly in the automobile industry chain also rose collectively.

Among the short-term indicators, the number of stocks that rose today and the number of stocks that hit the daily limit (67) all hit this week's highs. In addition, Volkswagen Transportation and King Long Automobile, two popular stocks with the highest recent gains, both hit the daily limit in the afternoon.

This is because, after the market closed yesterday, the A-share market received a lot of positive news.

In addition to the sentiment boost brought about by the sudden strengthening of the RMB exchange rate, the more direct benefit is that the National Development and Reform Commission and the Ministry of Finance issued "Several Measures to Strengthen Support for Large-Scale Equipment Updates and Consumer Goods Trade-ins".

It is mentioned that the National Development and Reform Commission will take the lead in arranging about 300 billion yuan of ultra-long-term special treasury bonds to increase support for large-scale equipment renewal and consumer goods replacement. 150 billion yuan of funds to support local consumer goods replacement and about 50 billion yuan of funds to support the first batch of approved equipment renewal projects will be issued in the near future, and it is planned to issue all the 300 billion yuan of funds by the end of August.

According to institutional analysis,The home appliances and automobile sectors are the main beneficiaries.

CITIC Securities pointed out that going overseas will still be the main development direction of the home appliance industry in the second half of 2024. Chinese companies' products are highly competitive globally. At present, Chinese companies' overseas market share is still relatively low, and the overseas market growth prospects are promising. From a long-term perspective, Europe and the United States still dominate, but emerging markets represented by the Middle East, Africa, and Latin America have shown strong growth resilience and will become a breakthrough for China's home appliance export growth in the future.

CITIC Securities believes that the new version of the car trade-in policy is much stronger than market expectations, and the stimulus to the auto industry will be much better than the policy standards at the end of April. Among them, the commercial vehicle trade-in policy was introduced for the first time, which greatly exceeded market expectations. This round of "trade-in" policy is expected to release the demand for terminal holders to hold cash for purchase, and passenger cars, commercial vehicles, two-wheeled vehicles, power batteries and other sectors are expected to benefit comprehensively.

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: Screenshot of market software

Reporter Zhao Yun, Editor Xiao Ruidong

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