CSI 300 rose by 2.00%
Editor’s Note: As always, we would appreciate any feedback you have. It will help us make this app more useful to you.
This week, the A-share market continued with the “attempted rebound” pattern, with all major indices closing in positive territory, marginally repairing market sentiment. The SSE Index(000001) gained 1.92% for the week, and although it is still 9.05% below its one-year high, it has risen 4.65% above its 200-day moving average, indicating a stabilizing mid-term trend. The CSI 300(000300) also increased by 2.00%, but its current price remains 13.58% lower than its one-year peak, showing that blue-chip stocks are still in the process of recovery.
In terms of structural performance, growth styles led significantly. The ChiNext(399006)rose by 3.27% this week, and despite being 21.91% below its one-year high, it has climbed 2.27% and 3.64% above its 10-day and 20-day moving averages respectively, indicating signs of short-term capital returning to high-growth targets. The Shenzhen Index(399001) also advanced by 2.29%, reflecting an overall improvement among small and mid-cap stocks, consistent with post-holiday preferences for more elastic stocks.
The Hang Seng Index(HSI) gained 1.61% during the week, marking its fourth consecutive week of strength. This index has now surpassed its 200-day moving average by 12.76%, though it remains 8.20% away from its one-year high. In terms of trading volume, the daily average turnover this week was 1.14 times the average over the past 50 days, indicating ongoing participation by foreign and institutional funds.
During the “May Day” Golden Week holiday, domestic consumption data showed signs of recovery. CICC pointed out significant improvements in tourism, catering, and retail sectors compared to the previous period. Coupled with the Caixin services PMI for April falling back to 50.7, which, although lower than expected, still indicates expansion, suggesting that the service sector maintains its expansion on a high base, gradually releasing the momentum of domestic demand recovery.
On the policy front, on May 7th, key press conferences were held by the People’s Bank of China and the China Securities Regulatory Commission, announcing a reduction in the reverse repo rate in the open market to 1.4% and simultaneously introducing a series of financial support measures, including setting up risk-sharing tools and promoting pilot projects for technology innovation bonds. PBOC Governor Pan Gongsheng expressed the need to “reduce financing costs for the real economy,” signaling further room for RRR cuts and interest rate reductions within the year. Additionally, the Promotion Law for Private Economy will soon be implemented, with multiple departments clearly stating they will increase financial and policy support for private enterprises, especially in emerging industries, stabilizing market expectations.
Fiscally, Minister Lan Fuan of the National Development and Reform Commission emphasized that China will adopt “more proactive and effective” macroeconomic policies and is confident about achieving around a 5% economic growth target for 2025, echoing the main theme of “expanding domestic demand comprehensively and promoting consumption” as published in the Flagship article. Overall, the policy “combination punch” is continuously solidifying the market bottom.
Internationally, the Nasdaq Composite(0NDQC) and the S & P 500 Index(0S&P5) fell by 0.28% and 0.40% respectively, technically speaking, the Nasdaq is 2.11% below its 200-day moving average, raising concerns about high-valuation sectors. On May 7th, the Federal Reserve announced keeping the upper limit of the federal funds rate at 4.5%, meeting market expectations. Chairman Powell stated that it’s not yet time to cut interest rates and that combating inflation remains a priority. However, recently released US April ISM Non-Manufacturing PMI rose to 51.6, exceeding expectations, while the final S&P Services PMI slightly declined to 50.8, highlighting distinct characteristics of economic divergence.
Meanwhile, initial jobless claims in the US fell to 228,000, maintaining a tight labor market, further supporting the policy stance of “keeping higher interest rates for longer.” JPMorgan Chase and CITIC Securities both noted that the Fed’s subsequent decisions will be constrained by two uncertainties: the actual inflation trend and the outcome of tariff and trade negotiations between China and the US. Geopolitically and policy-wise, Trump proposed tariffs on Chinese goods again, facing strong opposition from American businesses and global hedge funds. The Ministry of Foreign Affairs responded that China would firmly safeguard its developmental interests, while recent high-level economic and trade talks between China and the US were seen as signals of potential room for maneuver.
Sector-wise, the top three performing sectors this week were Telecom-Fiber Optics(G3552IG.CN), with a weekly gain of 8.24%. Despite some adjustment pressures, investor optimism towards fiber optic infrastructure drove overall sector growth. Wholesale-Electronics(G3577IG.CN) also performed well, rising by 7.21%, benefiting from technological innovations and the recovery in downstream consumer electronics demand, attracting significant capital inflows. Aerospace/Defense(G3722IG.CN) similarly increased by 7.21%, with continuous growth momentum in the military sector, especially against the backdrop of escalating global geopolitical risks, increasing demand for aerospace and defense-related companies.
This week, the TOP33 portfolio presented a divergent performance, with an average change of +2.88%, where 15 stocks rose and 18 fell. The best-performing stock was AVIC Chengdu Aircraft(302132), with its share price soaring by 35.97%, demonstrating exceptional performance. The company focuses mainly on the research and production of aviation weaponry and equipment, primarily concentrating on the aviation industry. Although there is currently no detailed O’Neil Industry Rating or Relative Strength Rating available, the market appears optimistic about its prospects in the military and aviation fields based on its stock performance. Continuous attention and financial support from the Chinese government towards strategic industries such as aviation and defense could provide long-term growth impetus for AVIC Chengfei. Moreover, with increasing global political uncertainty, the demand for military equipment may rise, further boosting the performance of related companies.
Overall, the foundation for an attempted rebound in the A-share market is gradually solidifying, but breaking through requires transaction volume support and policy promotion. In the short term, the market is expected to maintain a relatively strong oscillating pattern amid boosts in consumption, policy support, and overseas interest rate watchfulness.
What do you think? Please email us any questions or comments.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on May 9, 2025