news

china’s stock market rises at epic pace

foreign investors have changed their views

01

blackrock upgrades china stock rating

blackrock, the world's largest asset manager, has raised its tactical asset allocation to china from "neutral" to "moderately overweight."

blackrock investment research institute said that chinese stocks should be moderately overweighted! according to the research report, the policy signals released by the latest high-level meeting indicate that large-scale fiscal stimulus measures may be introduced. considering that chinese stocks are at a significant discount compared to developed market stocks, this may become a catalyst for investors to re-enter the market. based on the expected fiscal stimulus measures, the rating of chinese stocks has been upgraded, and china stocks are still moderately overweight in the short term. stock space.

02

goldman sachs: chinese stock market expected to rise further

"i've had more video calls on china in the past 48 hours than in all of 2024," goldman sachs technology strategist scott rubner wrote in a note, suggesting investors are increasingly concerned about missing out on a surge in chinese stocks. .

rubner noted that so far, international investors have largely not participated in china's stock market rebound, making the rally a "painful trade" for foreign investment managers.

now, as investment managers grow increasingly concerned about missing out, international investors may be about to rush in and further fuel the rally. "i really think this time is different for chinese stocks," said a goldman sachs technical strategist.

in one trading day last tuesday alone, goldman sachs' prime brokerage business recorded the largest single-day net buying of chinese stocks since march 2021, and the second largest net buying of chinese stocks in the past decade.

noting that record demand for chinese stocks has been driven almost entirely by long buying, rubner said investors appear to be increasingly concluding that the current rally "may not be a flash in the pan."

03

morgan stanley: china’s stock market will continue to rebound

morgan stanley said that china's stock market may usher in a more "sustained rebound" in the next stage, driven by a series of stimulus measures and signals announced last week, and not just limited to the recent sharp rise.

morgan stanley analysts wrote in a report on september 29: "last week's policy exceeded our expectations, with strong monetary easing and unprecedented measures aimed at stabilizing and supporting the stock market and stemming the decline in the housing market. ”

analysts predict that chinese stocks will rise by at least 10% in the short term, and more in the future. "in the next phase, we see the potential for a more sustained rebound, with valuations reaching november 2022 to march 2023 levels," they added, assuming that amid a broader growth recovery and efforts to eliminate deflation, improvement in corporate profits "further became clear".

hong kong stocks surge

on october 2, the overall performance of the asia-pacific market was poor, but hong kong stocks bucked the trend and rose independently, ushering in a good start to october.

real estate and domestic brokerage stocks performed well, with more than 10 real estate stocks doubling in a single day, and shenwan hongyuan hong kong's cumulative increase during the year exceeded 600%. hong kong pharmaceutical outsourcing concept stocks surged violently in late trading, with many stocks gaining strength. at 15:20 in late trading, china financial investment management suddenly surged straight up, with an increase of more than 980%, closing up 730.77%, with a turnover of nearly hk$90 million.

citic securities believes that the valuation of hong kong stocks shows sufficient room for upside. in terms of market outlook, the hong kong technology and internet sector has seen a significant recovery in profitability, benefited from the wave of dividend buybacks in terms of valuation, and benefited from the favor of foreign capital in terms of liquidity, so it deserves the most attention.

01

hong kong stocks get off to a good start in october

brokerages and real estate companies join hands to help rise

on october 2, most of the major stock indexes in the asia-pacific market, such as the nikkei 225 index and the korea composite index, closed down, but the hong kong stock market bucked the trend and rose independently. wind data shows that as of the close, the hang seng index rose by 6.20%, the hang seng china enterprises index rose by 7.08%, and the best-performing hang seng technology index rose by 8.53%. the three major stock indexes all rose by more than 31% during the year.

image source: wind

the ftse china a50 index futures continued to rise in the afternoon. as of 16:46, the index rose 7.49%, hitting a new high in more than two years.

image source: wind

the "bull market flag bearer" brokerage stocks performed well today, with the chinese brokerage index hitting a record high during the session. looking at individual stocks, huarong financial holdings surged 412.50%; shenwan hongyuan hong kong surged 206.02%, hitting a new high in more than six years, and the cumulative increase during the year exceeded 600%; cinda international holdings, china merchants securities, orient securities, citic construction investment securities, guotai junan international, guolian securities, etc. were among the top gainers.

image source: wind

hong kong mainland property stocks are experiencing explosive growth. as of the close, the hong kong mainland real estate index surged 20.96%, hitting a new high in more than a year. in terms of individual stocks, ronshine china accelerated its rise in late trading, with a single-day increase of nearly 400% as of the close. e-ju enterprise holdings, agile group , landsea green management, greenland hong kong, shimao group, shanghai zendai, etc. have doubled their prices within the day, and stocks such as hongyang real estate and zhuguang holdings have also experienced surges.

image source: wind

among other industry sectors, hong kong pharmaceutical outsourcing concept stocks rose in late trading. as of the close, tigermed rose nearly 29%, pharmaron rose nearly 20%, zhaoyan new drug rose nearly 19%, and wuxi apptec rose more than 17%. wuxi biologics rose more than 15%.

02

organization: it is recommended to pay attention to three main lines

ping an securities recommends that we pay attention to three main lines in the short term: first, the real estate, building materials, consumer, non-bank and other sectors that directly benefit from this round of policies; second, the highly elastic internet sector, which is usually the fastest to benefit from the inflow of hong kong stock capital. ; the third is the dividend sector, but what needs to be paid attention to is the recent upward trend in risk appetite, and there may be differentiation within the dividend sector with strong defensive attributes.

for the brokerage sector, china galaxy securities believes that the continued increase in market activity will promote the continuous recovery of the industry's prosperity. it is recommended to seize three types of right-side layout opportunities: first, leading securities firms with strong comprehensive strength; second, expected to improve through mergers and acquisitions and restructuring a securities firm with core competitiveness; third, a securities firm with good digital transformation development.

for the real estate sector, everbright securities recommends focusing on two main lines: first, stable leading real estate companies that have comprehensive development capabilities in the area, have the opportunity to participate in the urban renewal of mega-cities, and are expected to increase their market share; second, actively promote consumer commercial public reits , optimistic about the first real estate companies with diversified layouts, rich existing asset resources, and core competitiveness in the commercial real estate track.

source: china securities news (reporter hu yu), china fund news (reporter taylor)