What is the medium and long term value of the national team to boost the A share market?

Mondo Finance Updated on 2024-02-08

In the context of the recent continuation of the A**market, the increase in holdings of Huijin Company has brought a positive signal to the market. The company fully recognizes the value of the current A** allocation, and has expanded the scope of the exchange-traded open-end index** (ETF) to increase its holdings, and plans to continue to increase the intensity and scale of its holdings to resolutely maintain the smooth operation of the capital market.

This move not only injected incremental capital into the market, helped to stabilize market sentiment, but also conveyed a positive attitude towards the market at the policy level. Yang Chao, a strategic analyst at the China Galaxy Research Institute, said that Huijin's increase in holdings is expected to help restore investor confidence and boost the overall performance of the A** market.

Since October 2023, ** Huijin has repeatedly increased its holdings in major state-owned banks and ETFs, showing its recognition of the medium and long-term investment value of the A** market. This increase in holdings has also been supported by regulators. The China Securities Regulatory Commission said that it will continue to create more convenient conditions and smoother channels for institutional investors such as ** Huijin Company, so as to promote them to increase their holdings of A shares more vigorously.

In addition, the China Securities Regulatory Commission also encourages all kinds of institutional investors, such as public offerings, private placements, social security, etc., to enter the market more vigorously and introduce more incremental funds for the A** market. This series of measures shows that the policy level is trying to guide more medium and long-term funds into the market to maintain the stable operation of the market.

From the perspective of economic fundamentals, China's economy is currently showing a trend of stability and improvement. Combined with the valuation indicators of the A** market, the current market has significant allocation value. At the same time, good news at the policy level has been continuously introduced, such as reducing the investment risk factor of insurance companies and implementing long-term assessment of state-owned commercial insurance companies, which will help enhance market confidence.

Buybacks by listed companies and the increase in holdings by major shareholders are also important factors in boosting market confidence. Since the beginning of this year, there have been many cases of buybacks by listed companies and increased holdings by major shareholders, which sends a positive signal to the market that the value is undervalued.

On the whole, with the continuous increase in policy level and the increase in the repurchase and increase of listed companies, the medium and long-term investment value of the A** market has gradually emerged. Under the positive signal of the "national team" to increase its holdings, market confidence is expected to be further repaired, and the A** field is expected to usher in a stable and rebounding trend.

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