news

in the morning trading today, a-shares rose in large volume. as of the midday close, major stock indices such as the shenzhen component index, csi 500, and csi 1000 all rose by more than 1%. more than 4,600 stocks in the two markets rose, and trading showed a trend of rapid expansion.

on the market, grain concepts, real estate, hotel and catering, liquor and other sectors led the gains, while shipping, insurance, banking, coal and other sectors made slight adjustments.

real estate continues to be active

affected by the overnight us interest rate cut, expectations of domestic interest rate cuts have resurfaced, and sectors that are more sensitive to interest rates, such as real estate, have performed actively.

the real estate sector index opened higher in the morning and rose by more than 4% during the session, rising for the fifth consecutive day, reaching a new high in more than a month, and the half-day transaction exceeded the full-day transaction yesterday. electronic city and china communications construction real estate both rose by the daily limit for the third consecutive day, and tiandiyuan and others also closed strongly.

sectors closely related to real estate, such as household goods, equal rights to rent and purchase, green buildings, and property management, also rose across the board, with shanghai jiubai, hongsheng huayuan, and lingnan shares hitting their daily limit.

on the news front, the u.s. federal reserve announced on the 18th that it would lower the target range of the federal funds rate by 50 basis points. subsequently, the hong kong monetary authority lowered its benchmark interest rate by 50 basis points to 5.25%; the central bank of kuwait cut its interest rate by 25 basis points to 4%; the central bank of bahrain lowered its overnight deposit rate by 50 basis points to 5.50%; the central bank of the united arab emirates lowered its overnight deposit rate by 50 basis points to 4.90%; and the central bank of qatar lowered its deposit rate by 55 basis points to 5.2%.

moreover, institutions generally expect the us to cut interest rates again this year. huatai securities believes that the fed will continue to push for interest rate cuts in the future. the fed may cut interest rates by 25 basis points each in november and december, or by 50 basis points at a time and 25 basis points at a time, depending on the economic situation. the cumulative interest rate cuts this year are expected to reach 100 basis points to 125 basis points.

in addition, the financing coordination mechanism for real estate companies is still being implemented, and the number of "white lists" is increasing. according to the latest statistics released by the national financial regulatory bureau at the end of august, commercial banks have approved 5,392 "white list" projects, an increase from more than 4,000 at the end of june; and the approval amount has also increased from 1.2 trillion yuan at the end of june to nearly 1.4 trillion yuan. the subsequent white list mechanism will continue to play an important role in alleviating the cash flow pressure of real estate companies.

supported by multiple favorable policies, the decline in the real estate industry has eased. according to the national bureau of statistics, the national real estate development investment fell by 10.2% year-on-year in august, a decrease of 0.6 percentage points from july; the sales area and amount of commercial housing in august fell by 12.6% and 17.2% year-on-year, a decrease of 2.8 percentage points and 1.3 percentage points from july; the funds in place in august fell by 10.6% year-on-year, a decrease of 1.3 percentage points from july.

galaxy securities pointed out that the monthly sales area in august increased compared with july, and the investment side recovered slightly. under the background that the overall real estate market is still under pressure, if real estate developers increase their efforts to launch and sell, it may have a certain boost to the overall real estate market transactions. with strong policy support and the low base last year, the policy effect may gradually emerge. the leading real estate developers have demonstrated excellent operational management capabilities and financial advantages, and their market share is expected to rise further.

agricultural stocks strengthened across the board

agricultural stocks strengthened across the board in the morning, with grain concept stocks leading the gains, and the sector index rose by more than 4%. all stocks in the sector rose without a single decline. jingliang holdings rose to its daily limit in less than 5 minutes after the opening, and its share price hit a new high in more than 3 months. tsuen wan hi-tech and shenzhen grain holdings were among the top gainers.

grain, as the cornerstone of national economy and people's livelihood, its safety and stability is the top priority of national development. in august, the central bank and five other departments jointly issued the "notice on carrying out a special action to learn and apply the experience of the "ten million project" to strengthen financial support for rural comprehensive revitalization", proposing to implement a special action to ensure financial food security and expand financial services for the grain industry chain.

zhejiang securities said that in recent years, frequent extreme weather has increased uncertainty in global food production, and the cost of agricultural materials and other planting materials has remained high. at the same time, the impact of international grain prices on domestic grain prices has increased, and the risk of farmers' grain production income has also increased accordingly. at present, the strategic height of food security has been significantly improved, and the commercialization of domestic gmos has come with the wind. we recommend high-quality seed companies with leading scientific research strength and gmo first-mover advantages.

the prepared food sector also opened higher and continued to rise, with an intraday surge of more than 4%, the largest single-day gain in five months. fucheng shares, huifa foods, qianwei central kitchen and many other stocks rose to their daily limit, while gaishi foods and others also rose to their daily limit or more than 10%.

in recent years, the concept of pre-prepared meals has been popular. according to data from the china cuisine association, the penetration rate of pre-prepared meals in china has reached 10% to 15%. it is expected to increase to 15% to 20% by 2030, and the market size can reach 1.2 trillion yuan.

huaxin securities believes that frozen food companies should strengthen their customized service capabilities for large b-ends, tap into incremental performance through localized r&d and new customer development, while strengthening the market competitiveness of core products to achieve steady performance improvement. the pre-prepared food market is expected to further concentrate on leading companies under the catalysis of new regulations. we recommend qianwei yangchu and anjing food, and pay attention to longda food, sanquan food, etc.

agricultural-related sectors such as seed industry, agriculture, forestry, animal husbandry and fishery, pork, and aquatic products also rose collectively in the morning. honghui fruits and vegetables, zhanzidao, xiaoming shares, and jinjian rice industry were among the top gainers.

proofreading:gao yuan