On Friday, A-shares, Hong Kong stocks, and the Chinese yuan experienced a strong rise. Nearly 4,700 stocks in the A-share market increased, real estate ETFs surged, and the banking sector underwent adjustments. The market transaction volume exceeded 880 billion yuan, setting a one-month high.
As the funds that had been "clustering" in Chinese bank stocks, which had been strong against the trend, showed signs of loosening, growth stocks may see a rebound. In a report, Huaxiang Securities pointed out that the growth sector performed strongly while bank stocks corrected, indicating an optimization in the market's chip structure. Looking ahead, dividend varieties represented by banks may continue the "seesaw market" with growth stocks.
Hong Kong stocks opened high and continued to rise, with the Hang Seng Index closing up 1.14%. Automobile stocks rose across the board, with Li Auto surging over 7% and NIO increasing over 10%. Real estate stocks continued to rise in the afternoon, with Vanke Enterprises nearly 10% up and Shimao Group up over 10%. Meituan rose over 2%.
Both onshore and offshore yuan strengthened against the US dollar, reaching the strongest levels since June.
The Shanghai Composite Index closed up 0.68%, the Shenzhen Component Index rose 2.38%, and the ChiNext Index increased 2.53%. Nearly 4,700 stocks across the market increased, with the market transaction volume exceeding 880 billion yuan, a volume increase of 269.3 billion yuan compared to the previous trading day, setting a one-month high.
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Real estate stocks soared across the board, with stocks such as Gemdale Corporation, Vanke A, Binjiang Group, Cinda Real Estate, Sunshine City Group, China United Network Communications, 5i5j Group, and Urban Construction Development all hitting the upper limit of the daily price fluctuation range.
Bank stocks corrected again, with the six major state-owned banks continuing to decline. Bank of Communications fell nearly 6%, China Construction Bank fell nearly 5%, and Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and Postal Savings Bank of China followed suit.
The Hang Seng Index closed up 1.14%, and the Hang Seng Technology Index surged 2.87%. Li Auto rose over 7%, NIO increased over 10%; real estate stocks continued to rise in the afternoon, with Vanke Enterprises nearly 10% up.
The offshore yuan against the US dollar rose slightly in the short term, accumulating a rise of over 110 points during the day, currently quoted at 7.0832, the strongest since June.
The onshore yuan against the US dollar rose 130 points during the day, currently quoted at 7.0850, reaching the highest level since June 2023.Government bond futures closed with the 30-year main contract up by 0.03%, the 10-year main contract down by 0.01%, the 5-year main contract up by 0.02%, and the 2-year main contract up by 0.01%.
The three major A-share indexes rebounded with increased trading volume, with the real estate sector showing strength and the banking sector falling again.
A-shares rebounded with increased trading volume, with the Shanghai Composite Index closing up by 0.68%, the Shenzhen Component Index up by 2.38%, and the ChiNext Index up by 2.53%. The market turnover exceeded 880 billion yuan, setting a one-month high.
In the market, real estate stocks surged across the board, with Jin Di Group, Vanke A, Binjiang Group, Cinda Real Estate, World Union, Sunshine Shares, 5i5j Group, and Urban Construction Development, among others, hitting the upper limit of the daily price fluctuation range.
Insurance stocks remained active, with New China Life Insurance touching the daily limit in the afternoon, and its market value returning to 100 billion yuan. Tianmao Group had previously hit the daily limit, China Pacific Insurance rose by more than 7%, and China Life Insurance, People's Insurance, and China Life followed suit with gains.
Securities firms, insurance companies, liquor, and semiconductors led the gains, while consumer electronics and artificial intelligence, among other technology themes, saw a comprehensive outbreak.
Banking stocks corrected again, with the six major state-owned banks continuing to decline. Bank of Communications fell nearly 6%, China Construction Bank fell nearly 5%, and Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and Postal Savings Bank of China followed with declines.
Regarding the recent pullback in banking stocks, J.P. Morgan believes that the trend of capital inflow into high-yield stocks will continue. The performance of banking stocks has not significantly missed expectations. The performance growth of Bank of Communications, Ningbo Bank, and CITIC Bank in the first half of 2024 is still on track with the expected earnings for the fiscal year 2024, and there is no need to overly worry that the banking industry will cut dividends due to capital pressure.
Hong Kong stocks opened high and continued to rise, with the real estate and automotive sectors exploding.The Hang Seng Index closed up by 1.14%, while the Hang Seng Tech Index surged by 2.87%. Automobile stocks saw a general increase, with Li Auto rising over 7% and NIO surging over 10%. Real estate stocks continued to rise in the afternoon, with Vanke Enterprises increasing nearly 10% and Shimao Group rising over 10%. Meituan's share price also rose by more than 2%.
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