CCTV News: Due to the abuse of tariffs by the US government, global stock markets fluctuated violently this week. A-shares have shown a steadily rebounded independent market.
This week, the A-share market rose for four consecutive days after Monday. From April 8 to April 11, the amplitudes of the four-day period were 1.95%, 3.71%, 1.20% and 1.19% respectively. The A-share market is the stock market with the least volatility and the most stable operation among the major capital markets in the world.
Zhang Jun, chief economist of China Galaxy Securities, said that China has the largest middle-income group in the world and the most powerful industrial system in the world. The completeness of the domestic circulation has given China a core advantage over the United States when the industrial chain and supply chain face huge uncertainties. To judge the future trend of A-shares, the flexible use of the policy toolbox will continue to stabilize market expectations in the short term, and the new quality productivity and consumption upgrades spawned by the technological revolution will become dual engines of growth.
Since April 7, the main force of the "national team" Central Huijin, China Chengtong, China Guoxin, and Social Security Fund have all expressed their intention to increase their holdings of ETFs; the State-owned Assets Supervision and Administration Commission of the State Council publicly stated that it fully supports central enterprises to continuously increase their holdings of listed companies to increase their holdings; local SASACs such as Beijing, Shanghai, and Shandong have introduced a "combination punch" to stabilize the capital market; insurance funds, public funds, and listed companies have also made large amounts of real money and repurchase and increase their holdings. According to incomplete statistics from Wande Information, a total of 299 listed companies have issued repurchase announcements and 137 companies have issued increased holdings since this week. According to preliminary estimates, since April, the market has added about 200 billion yuan in new stock repurchase and loans.
Zhang Jun said that from the market perspective, the repurchase funds have optimized the capital structure of the enterprise and injected new momentum into the high dividend strategy. The trend of capital accelerating its return to the value creation end is becoming increasingly obvious. Faced with external shocks, short-term demand has risen significantly since April, which also reflects the high recognition of its own value by listed companies. Relevant entities are firmly optimistic about the Chinese market.
Recently, world-renowned investment banks have also released research reports, expressing their firm optimism about the Chinese stock market. Morgan Stanley believes that globally, the A-share market is more resilient and should be regarded as an allocation option to hedge or diversify risks. Therefore, investors are advised to increase their proportion in China's asset allocation. UBS Securities pointed out that the current valuation of the Shanghai and Shenzhen 300 Index is 12% discounted compared with the MSCI Emerging Market Index, and the lower valuation level makes the A-share market more resilient.
