On the first trading day after the holiday, the A-share market experienced a significant pullback. Both the Shanghai Composite Index and the Shenzhen Component Index hit new lows for this stage. More than 4,500 stocks across the market fell, and net capital outflow exceeded 10 billion yuan, indicating that investor sentiment remains cautious. Analysts believe that the market's weak performance in the short term reflects the combined impact of various internal and external factors.
From the liquidity perspective, on September 18, the People's Bank of China announced a 568.2 billion yuan reverse repo operation to address the liquidity gap caused by the maturity of the Medium-term Lending Facility (MLF) and open market reverse repos. The rate of this operation was maintained at 1.70%, indicating the central bank's intention to maintain a loose monetary policy to stabilize the financial environment.
CITIC Securities pointed out that the current macroeconomic signals are weak, and the effect of policy support on the market still needs to be observed. With the decrease in fund inflows in September, the process of bottoming out in the A-share market is expected to accelerate. Investors need to remain patient and wait for a policy inflection point to appear. In terms of allocation, analysts recommend continuing to base strategies on dividends and moderately positioning in overseas markets to cope with domestic uncertainties.
Meanwhile, the increased volatility in global markets has also added complexity to the A-shares. The uncertainty of the international economy and the rise in geopolitical risks have an indirect impact on the market. Investors should remain highly vigilant and adjust strategies in a timely manner to deal with potential future fluctuations.
