Today (October 31), the three major A-share indexes fluctuated and strengthened. As of the close, the SSE Composite Index rose by 0.42%, the Shenzhen Component Index rose by 0.57%, and the ChiNext Price Index rose by 0.6%. The trading volume of the two markets exceeded 2.2 trillion yuan, with more stocks rising than falling in the overall market, with over 3400 stocks rising.

On the market, the semiconductor sector rose again in the afternoon, with Tongfu Microelectronics hitting the limit up, and stocks like Nations Technologies rising by over 10%. PV concept stocks were active, with Shuangliang Eco-Energy, GCL System Integration, Hainan Drinda New Energy Technology, and others hitting the limit up. The real estate sector surged, with China Fortune Land Development and other stocks hitting the limit up. Diversified finance, brokerage, lithography, and Zhupu AI sectors also performed well, while pork, hotel dining, household appliances, and coal sectors were among the top decliners.

In terms of turnover, the total turnover of the Shanghai and Shenzhen markets throughout the day amounted to 2217.3 billion yuan, an increase of 370.7 billion yuan from the previous trading day. Of this, Shanghai's turnover was 865 billion yuan, and Shenzhen's turnover was 1.35 trillion yuan. East Money Information led in turnover with 45.131 billion yuan. This was followed by Jiangsu Hoperun Software, TCL Corporation, Tianfeng, and Shenzhen Infogem Technologies, with turnovers of 26.951 billion yuan, 14.661 billion yuan, 14.131 billion yuan, and 12.42 billion yuan respectively.

Regarding capital trends, today the net outflow of main funds in the Shanghai and Shenzhen markets amounted to 37.202 billion yuan, accounting for 1.68%; the net outflow of large orders was 23.702 billion yuan, accounting for 1.07%; and the net inflow of small orders was 34.864 billion yuan, accounting for 1.57%.

Brokerage Views Sharing

China Galaxy Securities believes that the current fiscal and monetary policies are intensifying counter-cyclical adjustments to promote economic recovery and stability in the real estate market. The real estate policy combination, which includes supporting destocking and revitalizing land resources, will help improve the liquidity of real estate enterprises, and local debt measures will also optimize bank asset quality. For the banking sector, the interest rate spread impact is expected to be neutral, and the outlook for its allocation value remains bullish.

CITIC Securities stated that under policy impetus, the transaction volumes of existing homes and new homes in various regions are maintaining relatively high levels, with expectations that first-tier city house prices are likely to stabilize within the year. Influenced by this trend, it is expected that a large amount of high-quality land will enter the market in the fourth quarter of 2024, and some companies will improve asset quality by expanding land reserves. CITIC Securities is bullish on developers who have excelled in sales, land acquisition, and financing, as they are expected to benefit from stabilizing house prices and growth in Gross Transaction Volume (GTV).

Orient points out that the current market's rapid rise is accompanied by significant volatility, with the bottom gradually rising. However, due to external pressures and domestic economic adjustment demands, the market may experience twists and turns in the future. Technology growth sectors, such as semiconductors and emerging growth assets, are expected to maintain their advantages due to their significant profit potential.

Tianfeng Securities, on the other hand, indicates that there is a possibility of a continued short-term rebound, with market sentiment gradually turning towards rationality. As policies become clearer step by step, investors will focus more on the true beneficiaries of the policies rather than simply bottom fishing based on sentiment. In addition, foreign capital flows will be a key factor affecting the subsequent funding environment.