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on september 25, a-shares soared at the opening, with the shanghai composite index regaining 2,900 points and more than 5,200 stocks in the market rising.

at 10:04, half an hour after the market opened,the combined turnover of the shanghai and shenzhen stock markets exceeded 400 billion yuan。

at 10:13, the three major stock indexes continued to rise, all rising by more than 3% during the session. the shanghai composite index rose by 3.01%, the shenzhen component index rose by 3.28%, and the chinext index rose by 3.51%. diversified financial, real estate, and securities sectors led the gains, with more than 5,200 stocks rising in the two markets. real estate, banking and other sectors performed well.

hong kong stocks also rose. as of press time, the hang seng index rose by about 3% to break through 19,000 points, and the hang seng technology index rose by more than 3%.

looking at the market, diversified finance, insurance, real estate, brokerage, banking, steel and oil sectors led the gains, while concepts such as special valuations and internet finance were active.

on the news front, on the morning of september 24, the heads of the "one bank, one bureau, and one commission" collectively appeared at the state council information office press conference, releasing multiple favorable policies to boost market confidence. institutions generally believe that the reduction in reserve requirements and interest rates, coupled with the adjustment of existing mortgage interest rates, coupled with the introduction of new policy tools to support the stock market, the policy strength and pace exceeded expectations.

dongguan securities analyzed that, at the current point in time, the market has gradually emerged from the previous weak pattern, especially the sharp rebound in the market, which boosted market confidence. considering that the central bank, the china securities regulatory commission and other departments will launch a batch of incremental policy measures, which may drive the improvement of fundamentals and the restoration of market confidence, coupled with the valuation advantages of a-shares, the market is expected to stabilize and move upward amid volatility.

avic securities pointed out that, referring to historical experience, on the one hand, quasi-stabilization funds can help the market stabilize and recover in the short term and improve market risk appetite; on the other hand, the market has been in "low volume" for many consecutive days, and historically, "low price" often appears after "low volume". this time the market transaction volume has been reactivated, and the "low price" may have been confirmed.

everbright securities believes that after a large-scale surge, the shanghai composite index has moved away from the low set last week, and a "double bottom" has most likely taken shape. the market is expected to see a mid-level rebound.

offshore rmb regains 7.0 mark

in the early morning of september 25, the offshore rmb regained the 7.0 mark against the us dollar for the first time since may last year, and once rose to 6.9952.

on the morning of september 24, the state council information office held a press conference. pan gongsheng, governor of the people's bank of china, answered questions about the impact of the fed's interest rate cut on china's monetary policy and foreign exchange market. he said that the fed's 50 basis point interest rate cut on september 18 was the first interest rate cut in the fed's interest rate hike cycle in the past few years. with the implementation of the interest rate cut, the us dollar index fell back and the pressure on the depreciation of the rmb eased.

at present, except for the bank of japan, the monetary policies of major economies have entered a cycle of interest rate cuts, the momentum of the appreciation of the us dollar has weakened, and the us dollar index has fallen overall. since august, the us dollar index has fallen by 3% and is currently hovering around 101. on september 23, the exchange rate of the rmb against the us dollar was around 7.05 yuan, an appreciation of 2.4% since august.

pan gongsheng stressed that the exchange rate is a price relationship between currencies, and its influencing factors are very diverse, such as economic growth, monetary policy, financial markets, geopolitics, unexpected risk events, etc., all of which will have an impact on the exchange rate. from the external situation, due to the differentiation of economic trends in various countries, geopolitical changes such as the us election, and fluctuations in international financial markets, the uncertainty of the external environment and the trend of the us dollar still exists. from the perspective of the domestic situation in china, he said that the rmb exchange rate still has a relatively stable and solid foundation.

pan gongsheng further interpreted it from three levels:

from a macro perspective, the trend of economic stabilization and improvement will be further consolidated and strengthened. the relatively strong monetary policy introduced by the people's bank of china will help support the real economy, promote residents' consumption and boost market confidence.

from the perspective of the international balance of payments, the international balance of payments remained basically stable. in the first half of the year, the ratio of the current account surplus to gdp was 1.1%, which was in a relatively reasonable range.

from the perspective of foreign exchange market construction, the people's bank of china and the state administration of foreign exchange attach great importance to foreign exchange market construction. market participants are more mature, trading behavior is more rational, and the market's resilience has been significantly enhanced. in the first half of this year, the hedging ratio of import and export enterprises has reached 27%, and the proportion of cross-border settlement in rmb in goods trade accounts for 30%. overall, 50% of enterprises are less affected by exchange rate risks in foreign trade exports.

pan gongsheng reminded that in the context of two-way floating of the rmb exchange rate, participants should also view exchange rate fluctuations rationally, strengthen the concept of risk neutrality, and not "bet on the direction of the exchange rate" or "bet on unilateral trends." enterprises should focus on their core businesses, and financial institutions should persist in serving the real economy.

he further stated that the people's bank of china's position on exchange rate policy is clear and transparent.

first, we must uphold the decisive role of the market in exchange rate formation and maintain exchange rate flexibility.

second, we must strengthen expectation guidance, prevent the foreign exchange market from forming unilateral consistent expectations and becoming self-fulfilling, guard against the risk of exchange rate overshooting, and maintain the basic stability of the rmb exchange rate at a reasonable equilibrium level.

according to securities daily, on september 19, the federal reserve cut interest rates by 50 basis points, exceeding market expectations, and officially shifted its monetary policy. under this influence, the rmb exchange rate strengthened again. as the federal reserve has substantially turned to cutting interest rates in september and expects to cut interest rates twice more this year, the appreciation channel of the rmb exchange rate against the us dollar has also been opened.

china's asset explosion

on september 24, local time, the three major u.s. stock indexes closed higher, with the dow jones industrial average setting a record closing high for the fourth consecutive day, and the s&p 500 setting a record closing high for the second consecutive day. it is worth noting that chinese stocks soared, with the nasdaq china golden dragon index (hxc) closing up 9.13%, the largest single-day increase since 2022.

bilibili rose more than 17%, tencent music rose more than 16%, iqiyi rose more than 14%, jd.com rose more than 13%, xpeng motors, weibo, nio, li auto, futu holdings, and pinduoduo rose more than 11%, manbang rose more than 10%, vipshop and netease rose more than 8%, and alibaba and baidu rose more than 7%.

the 3x long ftse china etf-direxion closed up nearly 30%, the 2x long sse china internet stock etf-direxion rose more than 20%, the kraneshares china overseas internet etf rose more than 10%, and the china large cap etf-ishares rose more than 9%.

according to china securities journal, soochow securities stated that with the federal reserve's interest rate cut now in place and a combination of domestic financial policies being implemented, market risk appetite has been significantly repaired, and hong kong stocks and a-shares will gradually move out of the bottom area.

(the content and data of the article are for reference only and do not constitute investment advice. investors act accordingly at their own risk.)