These days, heavy policy bullishness continues to catalyze, funds are aggressively going long on China assets, the market's bullish sentiment towards China has already been ignited, and benefiting sectors have already risen in advance.

Last night, US stocks China assets ETF opened high and rose, with the increase expanding.$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$Rising by 25%,$Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$up more than 24%.

This morning, Hong Kong stocks$Hang Seng Index (800000.HK)$Surpassing the 20,000 point mark, the turnover exceeded 240 billion Hong Kong dollars in the morning session; among the popular science and technology stocks, $BABA-W (09988.HK)$Please use your Futubull account to access the feature.$TENCENT (00700.HK)$Please use your Futubull account to access the feature.$MEITUAN-W (03690.HK)$ a nearly 10% surge in the past three days.

A-share this morning opened high and the trading activity was overly active. $SSE Composite Index (000001.SH)$ Once there was a sideways fault, many investors reported delays in brokerage trading.

Currently, the market surge is mainly driven by a burst of bullish sentiment, indirectly caused by the combination of policies in recent days. However, it is important to note that some policies have already been implemented in the past two days, while others are still in the process or require evaluation after implementation.

In the short term, the policies that have been implemented stimulate consumption; in the long term, policies that have not yet been implemented and oversold sectors are worth paying attention to.

Lowering mortgage rates is bullish for consumption, with liquor, gold, jewelry, and other sectors taking the lead.

The most significant move in this round of policy combination is the use of monetary policy to stimulate the economy from the central bank level, while top-level meetings provide policy guidance.

At the press conference on the 24th, the three major financial regulators 'one bank, one meeting, one bureau' released a series of significant policies, covering related support policies in weak areas of economic operations such as real estate, consumption, and investment. The intensity and pace of the policies exceeded market expectations.

Of particular note, the central bank announced a reduction in existing housing loan rates and a uniform minimum down payment ratio for housing loans, guiding commercial banks to lower existing housing loan rates to levels close to new housing loan rates, with an average reduction expected to be around 0.5 percentage points.

On the 27th, the central bank quickly announced a reserve requirement ratio cut. Starting from September 27, 2024, the reserve requirement ratio for financial institutions is reduced by 0.5 percentage points (excluding financial institutions already implementing a 5% reserve requirement ratio). After this adjustment, the weighted average reserve requirement ratio for financial institutions is approximately 6.6%.

The Politburo meeting held yesterday emphasized the need to increase the countercyclical adjustment of fiscal and monetary policies, ensure necessary fiscal expenditures, effectively carry out grassroots 'three guarantees' work; combine promoting consumption and benefiting people's livelihoods, promote income growth for middle and low-income groups, upgrade consumption structure, and foster new consumption formats.

Various regions are launching special consumption activities focusing on hotspots, optimizing consumption scenarios, issuing consumer vouchers, providing consumer subsidies, and using substantial incentives to stimulate consumption and benefit people.

On September 25, the Shanghai Municipal Government Information Office held a press conference, announcing that Shanghai has decided to allocate 500 million yuan of municipal financial funds to distribute 'Joy Shanghai' service consumption vouchers in the catering, lodging, film, sports, and other four sectors. On the same day, the Sichuan Provincial Department of Commerce announced that Sichuan Province would allocate over 400 million yuan of financial funds for the issuance of 'Relaxed Lifestyle in Shu' consumption vouchers in 2024, with 300 million yuan allocated for 'Relaxed Lifestyle in Shu · Renewed Life' home furnishing consumption vouchers.

From an industry perspective, the decline in existing home loan interest rates may promote consumption. The reduction in existing home loan interest rates alleviates the repayment pressure for those burdened with housing loans. In listed companies, especially those related to baijiu (Chinese liquor), luxury goods, and other consumer sectors, there is a strong correlation, making these policies seen as bullish for consumption.

Whether in A shares or H shares, consumer-related stocks have rebounded to varying degrees. The baijiu sector in A shares has been active, while in H shares $Holidays (LIST1998.HK)$Please use your Futubull account to access the feature.$online retailer (LIST23361.HK)$Please use your Futubull account to access the feature.$Dining (LIST1083.HK)$ Today it rose significantly.

Among them,$CHINA RES BEER (00291.HK)$Today, there was another significant increase, with the midday closing price at 32.65 Hong Kong dollars per share, up 8.29%. Meanwhile, $TSINGTAO BREW (00168.HK)$ Both A shares and H shares have seen significant buying volumes, with midday gains of 7.90% and 5.96% respectively. In terms of tourism consumption, $TONGCHENGTRAVEL (00780.HK)$ nearly 15%, $HWORLD-S (01179.HK)$ also surged over 14%.

Investors are betting that the demand for luxury goods in the Chinese market will rise, leading to a widespread surge in luxury goods company stock prices. For example, in the gold and jewelry industry $LAOPU GOLD (06181.HK)$Please use your Futubull account to access the feature.$CHOW TAI FOOK (01929.HK)$Please use your Futubull account to access the feature.$CHOW SANG SANG (00116.HK)$Please use your Futubull account to access the feature.$LUK FOOK HOLD (00590.HK)$Please use your Futubull account to access the feature.$PRADA (01913.HK)$.

In terms of US stocks, the world's largest luxury goods giant LVMH Moet Hennessy Louis Vuitton Group $LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$ On Thursday, US stocks surged 11%, $Hermes International SA (HESAY.US)$ up 10.15%, $Burberry Group plc Sponsored ADR (BURBY.US)$up 8.67%, $COMPAGNE FIN ADR (CFRUY.US)$ Up 8.47%.

What other sectors have follow-up opportunities? Oversold biotechnology and real estate stocks are worth looking forward to.

Following the press conference held by the State Council Information Office on September 24th, which announced five real estate financial policies including the unified reduction of the down payment ratio for the second home and the reduction of existing home mortgage rates, the Political Bureau meeting held yesterday for the first time sent a signal to the market to promote the incremental policies for stabilizing the real estate market.

Lowering the 'existing home mortgage rates' directly benefits the real estate sector, and it is worth paying attention to the valuation recovery under policy-driven initiatives. The subsequent detailed policies and the effects of real estate policies are still areas worth noting in the future.

For example, including the adjustment and cancellation of purchase restrictions in six first-tier cities such as Guangzhou, the promulgation of new local regulations optimizing inventory and improving the quality; monthly data on sales of new commercial housing and unsold properties, and transaction data from various real estate enterprises are all worth noting.

In addition, within the oversold sectors, the biotechnology industry, benefiting from the dual positive aspects of the Fed rate cut and the postponement of the U.S. Biosecurity Act, the valuation recovery is worth anticipating.

In biotechnology companies, especially those in the research and development stage, often require a large amount of capital investment, and are very sensitive to changes in capital costs and market liquidity. The rate cut reduces the financing costs for enterprises, helping biopharmaceutical companies raise funds, promote research and development, and expand business operations.

Bocom International believes that the exclusion of the U.S. Biosecurity Act from the NDAA means that the legislation of the Biosecurity Act is further delayed, reducing the likelihood of a separate law within the year. At the same time, the latest version of bill S.3558 is not included $WUXI BIO (02269.HK)$ According to the U.S. legislative process, the bank believes that other companies mentioned may also have the possibility of being eventually delisted. Considering the formal start of the Fed's interest rate cut, marginal improvement in industry orders, it is expected that the investment sentiment of top CXOs will marginally warm up, but further valuation repair may require more visibility of performance recovery.

Minsheng Securities recently pointed out that the Biosecurity Act was not included in the Senate's 2025 NDAA, rendering the rider legislation ineffective. Regarding standalone legislation, H.R.8333 will enter the Senate process, with 6 weeks left in the 2024 Senate working days. Focus on the Senate's scheduling and voting process; the Fed cuts interest rates by 50bp, and the biotech financing end is expected to continue the improvement trend in the first half of the year. Leading CXOs relying mainly on overseas customers for orders and revenue contributions are expected to further warm up.

Among them, the companies with the highest market cap are $WUXI APPTEC (02359.HK)$Please use your Futubull account to access the feature.$WUXI BIO (02269.HK)$Please use your Futubull account to access the feature.$TIGERMED (03347.HK)$Please use your Futubull account to access the feature.$GENSCRIPT BIO (01548.HK)$Please use your Futubull account to access the feature.$PHARMARON (03759.HK)$ It is worth noting.

Editor/Rocky

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