On October 7th, Caixin reported that the essential financial and economic news affecting the market during the National Day holiday are:

On the macroeconomic front, the Shanghai Stock Exchange: will extend the acceptance time for designated trading order instructions starting from October 8th; Goldman Sachs raised the Chinese stock market to 'overweight' and expects a further 15-20% increase.

In terms of industry news, the Hong Kong stock market is hot, with significant growth in account openings and margin trading data at brokerage firms in the past week; various regions have introduced optimized real estate policies, and the market has responded positively.

In terms of company news, the price of Moutai Feitian continues to rise, with the Feitian (original) of the 24th year reaching 2430 yuan; Wuxi series responds to rumors about selling business.

In terms of overseas news, the United States added 0.254 million people in September, far exceeding expectations.Non-farm employmentJPMorgan and Bank of America no longer expect the Federal Reserve to cut interest rates by 0.5 percentage points in November.

Macroeconomic news

Shanghai Stock Exchange: will extend the acceptance time for designated trading order instructions starting from October 8th.

On the evening of October 6, the Shanghai Stock Exchange issued a notice regarding the extension of the acceptance of designated trading order instructions, pointing out that starting from October 8, the time slots for trading will be adjusted from 9:15 to 11:30 and 13:00 to 15:00 on each trading day, instead of 9:15 to 9:25, 9:30 to 11:30, and 13:00 to 15:00. Xiaocai Note: As mentioned in the notice, this time adjustment is to facilitate the designated trading for new account openings and improve efficiency. Market rumors analyzing this time adjustment as a cancellation of the call auction are completely misunderstood.

Goldman Sachs has raised the Chinese stock market to 'overweight', expecting it to rise by 15-20% more.

In its latest report, Goldman Sachs has raised China's stock market to 'overweight', believing that there is further upside potential. Goldman Sachs has increased the target price of MSCI China from 66 to 84, and the target price of the CSI 300 index from 4000 points to 4600 points. This implies that, at the current level, there is about 15%-18% potential upside in total return. In terms of industry allocation, Goldman Sachs stated that due to increased capital market activity and improved asset performance, insurance and other finance (such as brokerage, exchange, investment companies) are raised to 'overweight'. At the same time, Goldman Sachs maintains its 'overweight' stance on internet and entertainment, technology hardware and semiconductors, consumer retail and services, as well as daily essentials.

Morgan Stanley: With the financial measures in place, the Chinese stock market may rise another 15%.

Morgan Stanley stated that if the Chinese government announces more spending measures in the coming weeks, the Chinese stock market may further rise by 10% to 15%. "Expectations of further fiscal expansion have returned to the table, prompting investors for the first time in a long time to view China from the perspective of inflation," said Morgan Stanley's Chief China Stock Strategist Laura Wang in an interview. "The last time investors viewed China through this lens was actually after the beginning of last year. At that time, the global investors' valuation was around 12 times the expected P/E ratio of the MSCI China Index."

The Ministry of Commerce: China has filed a lawsuit against Canada's unilateralism and trade protectionism at the World Trade Organization.

Canada's levying of tariffs on Chinese electric cars has come into effect and the final product list of tariffs on Chinese steel and aluminum products has been released. A spokesperson for the Ministry of Commerce stated that China has filed a lawsuit against Canada's unilateralism and trade protectionism at the World Trade Organization, and has initiated an anti-discrimination investigation into Canada's relevant restrictive measures in accordance with the law. China will take all necessary measures to firmly defend the legitimate rights and interests of Chinese enterprises.

Average daily trading volume of Hong Kong stocks increased by 37.9% last week, with the Hang Seng Index rising 10.2% for the entire week.

Stimulated by favorable policies and concerns of foreign capital being left out, Hong Kong stocks continued to surge last week, with significantly increased trading volume. However, intra-day volatility began to intensify, and the upward momentum became erratic. The Hang Seng Index rose by 10.2% throughout the week, closing at 22,736 points. The Hang Seng Tech Index soared by 17.4% for the week, closing at 5,227 points. The average daily trading amount in the market increased by 37.9% to 378 billion Hong Kong dollars per week, hitting a historical high.

Industry News

Hong Kong stocks are booming. Recently, there has been a significant increase in data such as account openings and equity derivatives at Hong Kong brokerages.

During the National Day holiday, Hong Kong stocks continued to trade normally, and the hot market led to a certain degree of growth in data such as account openings in the Hong Kong market over the past week. A-shares were closed during the National Day holiday, prompting more investors to intensify trading on Chinese assets listed in Hong Kong. However, some brokerages also mentioned that although there has been an increase, it is not substantial due to Chinese brokers in Hong Kong not being able to conduct business on the mainland.

Ministry of Housing and Urban-Rural Development: Over 50 cities have introduced local real estate market optimization policies, leading to increased sales of commodity housing in many areas.

It was learned from the Ministry of Housing and Urban-Rural Development on October 5th that since the end of September, various regions have successively introduced optimization and adjustment measures for the real estate market, with positive market reactions. According to statistics from the Ministry of Housing and Urban-Rural Development, cities conducting promotional activities have generally reported that since the National Day holiday, the majority of projects participating in promotions have seen a visitation volume increase of more than 50% year-on-year. For example, from October 1st to 3rd at noon, the number of new house viewings in Beijing increased by 92.5% compared to the same period last year, with a doubling in the number of subscriptions, and second-hand house viewings increased by 104.1% year-on-year. Some real estate projects in Guangzhou received over 150 groups of visitors in a single day, a 200% increase from normal times; preliminary statistics from Hunan Province indicate a 106% increase in new house viewings compared to the previous month and an 80% increase in second-hand house viewings. According to preliminary statistics from the China Index Research Institute (Sichuan), the visitation volume of sampled projects in Sichuan Province increased by an average of 70% compared to the period before the holiday, and the transaction conversion rate increased by an average of 140%. According to preliminary statistics from the Ministry of Housing and Urban-Rural Development, from September 30th to October 4th, Guizhou Province sold a total of 0.1375 million square meters of commodity housing (1,187 units), a year-on-year increase of 44.3%, with a transaction amount of 0.754 billion yuan, a year-on-year increase of 54.2%; Daqing City in Heilongjiang Province sold 156 units, a year-on-year increase of 254%. On the first day of the National Day holiday, the entire province of Shandong signed contracts for 0.0938 million square meters of new residential housing, a 46.8% year-on-year increase.

Beijing Housing Provident Fund Center: Beijing households with two or more children can now borrow up to 1.6 million yuan for home purchase.

On October 3rd, the Beijing Housing Provident Fund Management Center released a statement to implement the spirit of the Central Political Bureau meeting on September 26th, in response to the requirements of the municipal party committee and government, addressing public concerns. The Housing Provident Fund Center has increased its support for housing provident fund loans, allowing families with more than two children native to Beijing to have an additional loan amount of 0.4 million yuan for home purchases, with the maximum loan amount reaching 1.6 million yuan, better meeting the rigid housing needs and diverse improvement needs of residents.

China's foreign exchange reserves stood at $3,316.4 billion at the end of September, up $28.2 billion from the previous month.

According to statistics from the State Administration of Foreign Exchange, as of the end of September 2024, China's foreign exchange reserves stood at $3,316.4 billion, an increase of $28.2 billion from the end of August, representing a 0.86% increase. In August 2024, due to factors such as central bank monetary policies and expectations of major economies, macroeconomic data, the US dollar index fell, and global financial asset prices rose overall. The combined effect of exchange rate conversions and asset price changes led to the increase in the foreign exchange reserves that month. China's economy is generally stable, making steady progress with strong economic resilience and great potential, providing continued support for maintaining the basic stability of foreign exchange reserves.

The China-EU technical team will continue tariff negotiations on October 7.

On October 4th local time, the EU held a vote on whether to impose a five-year anti-subsidy duty on Chinese electric cars. A statement from the European Commission indicated that the vote received necessary support from EU member states for the proposal to impose tariffs on imported pure electric cars from China. In response, a spokesperson from the Chinese Ministry of Commerce stated China firmly opposes the EU's final anti-subsidy ruling, but also noted the EU's political intention to continue resolving the issue through negotiations. The China-EU technical team will continue negotiations on October 7th.

Company news.

Maotai Feitian prices continue to rise, with the original 24-year Feitian reaching 2,430 yuan.

According to today's liquor price news, Maotai Feitian prices continue to rise. On October 6, the 24-year boxed Feitian rose to 2,430 yuan per bottle, and the 24-year loose Feitian rose to 2,310 yuan per bottle.

Wuxi AppTec and Wuxi Bio respond to rumors of business divestment: actively assessing operational options, conducting regular business reviews.

There are reports that Wuxi Apptec and Wuxi Bio are beginning to sell part of their business. On October 4th, Wuxi Apptec side told reporters that they are evaluating options to continue running WuXi Advanced Therapies (high-end treatment business) to align with top priorities.

Alibaba repurchased $4.1 billion stocks in the third quarter.

Alibaba announced on the Hong Kong Stock Exchange that as of the quarter ended September 30, 2024, the company repurchased a total of 0.414 billion ordinary shares at a total price of 4.1 billion US dollars (equivalent to 52 million American depositary shares). These repurchases were conducted in the U.S. and Hong Kong markets under the company's share repurchase plan. There is still a remaining repurchase amount of 22 billion US dollars under the share repurchase plan authorized by the board of directors, with a validity period until March 2027.

Overseas News

The three major US stock indexes collectively closed higher last Friday, with large technology stocks generally up.

Last Friday, the three major US stock indexes all closed higher. The Dow rose by 0.81% last week, accumulating a 0.09% increase; Nasdaq rose by 1.22%, with a 0.1% increase last week; the S&P 500 rose by 0.9%, accumulating a 0.22% increase last week. The Nasdaq Golden Dragon Index closed up by 3.05%, with an 11.85% increase last week.

In September, the number of non-farm jobs in the United States increased by 0.254 million, far exceeding expectations.

In September, the number of non-farm jobs in the United States increased by 0.254 million, the largest increase since March 2024, estimated to increase by 0.15 million, with the previous value increasing by 0.142 million. The US Bureau of Labor Statistics revised the non-farm job additions in July from 0.089 million to 0.144 million; and in August from 0.142 million to 0.159 million. After the revision, the total job additions in July and August were 0.072 million higher than previously revised.

JPMorgan and bank of america no longer expect the Fed to cut interest rates by 0.5 percentage points in November.

JPMorgan and Bank of America currently expect the Fed to cut interest rates by 0.25 percentage points when it meets again in November. Previously, they had called for a larger rate cut, but labor market data showing the resilience of the US economy led them to abandon their previous calls.

Editor/Emily