CSI 300 rose by 1.12%
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This week, the A-share market maintained a “rebound attempt” pattern, with major indices rising slightly but weak trading volumes reflecting investors’ cautious stance. The SSE Index(000001) rose by 0.76% this week, with a gap of 5.11% from the 200-day moving average, indicating a stable mid-term trend. The CSI 300(000300) saw an increase of 1.12%, which is notably stronger than the SSE Index, but it remains 12.61% away from its one-year high, suggesting that structural market conditions still dominate. ChiNext(399006) and Shenzhen Index(399001)increased by 1.38% and 0.52% respectively, showing steady growth with signs of capital returning to growth sectors; however, both were below their respective 50-day moving averages by 0.68% and 1.16%, indicating they remain in a short-term consolidation phase.
In Hong Kong, the Hang Seng Index(HSI) climbed 2.09%, benefiting from positive signals between China and the U.S. and expectations of policy support within mainland China, boosting market confidence. Despite being 6.1% away from its one-year peak, its positive divergence from the 200-day moving average reached 14.47%, showing a steady technical improvement.
Internationally, U.S. stocks rebounded strongly. The Nasdaq Composite(0NDQC) surged 6.6% this week, while the S & P 500 Index(0S&P5) also gained 4.54%. Particularly, the Nasdaq standing at 19,112 points, just 5.4% off its one-year high, reflects improvements in both earnings and expectations for the tech sector. This was driven mainly by lower-than-expected April inflation data in the U.S.—with the CPI monthly rate increasing by only 0.2% and the annual rate dropping to 2.3%, reinforcing bets on interest rate cuts by the Federal Reserve this year. Moreover, retail sales grew by only 0.1% month-over-month, further easing concerns over economic overheating.
Regarding Sino-U.S. trade relations, joint statements from talks in Geneva conveyed a tone of coordination and cooperation, with several institutions expressing optimism about future stock and bond markets, considering the outcome “exceeds expectations”. Meanwhile, China announced adjustments to tariffs imposed on U.S. goods to 10% starting May 14th, without causing negative market reactions, indicating a more positive sentiment and reduced short-term disruption from geopolitical risks.
On the policy front, numerous supports have been rolled out. Seven departments jointly issued documents promoting the construction of a technology finance system, establishing a “National Venture Capital Guidance Fund”, and advancing measures such as fiscal expansion, urban renewal, and investor protection in the capital market, all aimed at stabilizing medium-term growth expectations. Additionally, the release of the “White Paper on National Security in the New Era of China” and the “Regulations on Ecological Environmental Protection Inspection” highlights multiple lines of action to lay a foundation for long-term development.
Sector-wise, the top three performing industries this week were Bldg-Hand Tools(G3548IG.CN) with a weekly gain of 11.12%. Despite relatively low overall trading volume, strong gains by individual stocks in this sector attracted market attention, indicating growing expectations for recovery in home and infrastructure-related consumption; Transportation-Ship(G4411IG.CN) rose by 5.72%, benefiting from short-term rebounds in shipping prices and signs of recovering external demand, drawing capital back into the sector; Retail/Whlsle-Bldg Prds(G5211IG.CN) recorded a 5.26% weekly gain, with small and medium-sized stocks in this sector becoming more active due to new real estate policies and infrastructure investments, rapidly increasing market heat.
This week, the TOP33 portfolio averaged a gain of 0.34%, slightly underperforming the broader market. Among them, 13 stocks rose while 20 fell, highlighting significant internal performance differentiation. Streamax Technology Co(002970), leading the pack with a 9.09% gain, became a market focus. Its main business involves the research and development of video-based commercial vehicle monitoring information systems. With an O’Neil Score of 71, RS Rating of 85, and EPS Rating of 82, it demonstrates considerable advantages in profitability and technical trends. Furthermore, as one of the industry standard setters, the company enjoys technological barriers and policy support advantages in the intelligent transportation sector for commercial vehicles. With AI technology accelerating in traffic safety and vehicle-road collaboration, Streamax Technology stands to benefit continuously from the increasing penetration of smart driving and connected vehicles. Its recent stock price surge also indicates recognition by capital of its future growth potential. From an industry perspective, several companies in the automotive parts sector recently reported better-than-expected Q1 results, coupled with a wave of intelligent upgrades, leading to noticeable capital inflows. Moreover, its industry rank of 37 suggests moderate attractiveness in this niche segment.
Although the A-share market is still in the early stages of a rebound, improvements in the external environment and boosts from domestic policies are becoming clearer, aiding market sentiment recovery. Technically, despite not hitting new highs, the main board index’s positive divergences from various medium to long-term moving averages support the basis for a rebound. Weak short-term trading volumes remain a constraint, but if trading volumes continue to recover, the market may enter a new upward cycle.
Next week, key focuses should include the progress of subsequent Sino-U.S. trade negotiations, guidance on interest rate paths from Fed officials’ speeches, and the performance of domestic macroeconomic data such as credit and industrial added value. Additionally, if policies are implemented and industrial support continues to advance, there could be rotation opportunities among strong sectors ranked within the top 40 based on O’Neil Scores, RS Ratings, and EPS Ratings, recommending ongoing attention to these stocks.
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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 16, 2025