On October 7th, the important financial news affecting the market during the National Day holiday were mainly as follows:

On the macro news front, the Shanghai Stock Exchange will extend the acceptance time for designated trading order instructions from October 8th; Goldman Sachs raises the Chinese stock market to "overweight", with an expected further increase of 15-20%.

On the industry news front, the Hong Kong stock market is booming, with a significant increase in account opening volume and margin trading in Hong Kong brokerages in the past week; many places have introduced policies to optimize the real estate market, which the market has positively responded to.

On the company news front, Moutai's Feitian liquor prices continue to rise, with the original Feitian (24 years) rising to 2430 yuan; WuXi responds to rumors of selling business.

On the international news front, the United States added 0.254 million people in September, far exceeding expectations.Non-farm employmentJPMorgan and Bank of America no longer expect the Fed to cut interest rates by 0.5 percentage points in November.

Macroeconomic news

Shanghai Stock Exchange: From October 8th, the acceptance time for designated trading order instructions will be extended.

On the evening of October 6, the Shanghai Stock Exchange issued a "Notice on Extending the Acceptance of Designated Trading Order Instructions", which pointed out that starting from October 8, the trading hours on each trading day will be adjusted from 9:15 to 11:30 and 13:00 to 15:00, instead of 9:15 to 9:25, 9:30 to 11:30, 13:00 to 15:00. Xiao Cai Note: As mentioned in the notification, this timing adjustment is to facilitate the designated trading for new account openings and improve efficiency. Market rumors analyzing this timing adjustment as the cancellation of the call auction are completely misunderstood.

Goldman Sachs has raised the Chinese stock market to "overweight", expecting a further increase of 15-20%.

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%.

If the Chinese government announces more spending measures in the coming weeks, Morgan Stanley believes that the Chinese stock market could further rise by 10-15%. "The expectation of further fiscal expansion has returned to the table, this makes investors view China from the perspective of monetary inflation for the first time in a long time," said Laura Wang, Chief Chinese Stock Strategist at Morgan Stanley. "The last time investors viewed China through this lens was actually after early last year. At that time, global investors estimated the MSCI China Index's expected PE ratio to be around 12 times."

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

Canada's imposition of tariffs on Chinese electric cars has come into effect and the final product list for imposing tariffs on Chinese steel and aluminum products has been released. A spokesman 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 anti-discrimination investigations into Canada's relevant restrictive measures. China will take all necessary measures to firmly defend the legitimate rights and interests of Chinese enterprises.

Average daily turnover on the Hong Kong stock market increased by 37.9% week-on-week last week, with the Hang Seng Index rising 10.2% for the entire week.

Driven by the policy bullish stimulus and concerns from foreign investors, incremental funds propelled the Hong Kong stock market to continue its strong performance last week, with significantly increased trading volume. However, intraday volatility started to intensify, and the pace of ascent became more erratic. The Hang Seng Index rose by 10.2% for the entire week, closing at 22,736 points. The Hang Seng Tech Index surged by 17.4% throughout the week, ending at 5,227 points. The daily average trading amount in the market increased by 37.9% to 378 billion Hong Kong dollars on a weekly basis, reaching a historical high.

Industry News

The Hong Kong stock market has been booming, with a significant increase in data such as account openings and margin trading activities at local brokerages in the past week.

During the National Day holiday, the Hong Kong stock market operated as usual, and the hot market conditions led to a considerable increase in data such as account openings in the Hong Kong market over the past week. With the A-share market closed for the holiday, more investors intensified their trades on mainland Chinese symbols listed in Hong Kong. However, some brokerages reported that since mainland Chinese brokerages in Hong Kong cannot expand their business in the mainland, the increase was limited.

Ministry of Housing and Urban-Rural Development: Over 50 cities have introduced local real estate market optimization policies, resulting in increased sales of commodity houses in multiple regions.

As of October 5th, according to the Ministry of Housing and Urban-Rural Development, various regions have successively implemented measures to optimize and adjust the real estate sector since the end of September, with positive market responses. According to statistics from the Ministry, cities conducting promotional activities have generally reported a 50% or higher year-on-year increase in property project visits since the National Day holiday. For example, from October 1st to 3rd, the volume of property viewings in Beijing increased by 92.5% compared to the same period last year, with a two-fold increase in subscriptions to new homes. In Guangzhou, the daily number of visits to some properties exceeded 150 batches, representing a 200% increase compared to normal levels. Initial statistics from Hunan Province show a 106% increase in new home viewings and an 80% increase in second-hand home viewings. Based on preliminary statistics from the China Index Research Institute (Sichuan), site visits on sampled projects in Sichuan Province increased on average by 70% compared to the pre-holiday period, with a 140% increase in transaction conversion rates. 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 (1187 units) of commodity housing, a 44.3% year-on-year increase, with a transaction amount of 0.754 billion yuan, up by 54.2% year-on-year; Daqing City in Heilongjiang sold 156 units, a 254% increase year-on-year. On the first day of the National Day holiday, Shandong Province signed contracts for a total area of 0.0938 million square meters for newly built commodity houses, 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 support the implementation of the Central Political Bureau's meeting on September 26th, in response to the requirements of the municipal party committee and government. To address public concerns, the Housing Provident Fund Center has increased its support for housing provident fund loans. For Beijing residents with two or more children, the loan amount for housing provident fund loans will increase by 0.4 million yuan, with the highest loan amount reaching 1.6 million yuan, better meeting the rigid housing needs and diversified improvement needs of residents.

China's foreign exchange reserves stood at $3,316.4 billion at the end of September, an increase of $28.2 billion compared to 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, with a growth rate of 0.86%. In August 2024, due to the impact of major central bank monetary policies and expectations, macroeconomic data, and other factors, the US dollar index fell, and global financial asset prices generally rose. The comprehensive effect of exchange rate conversions and changes in asset prices led to an increase in foreign exchange reserves that month. China's economy is overall stable, making progress, strong in resilience and potential, and other favorable conditions remain unchanged, providing continued support for maintaining the basic stability of foreign exchange reserves.

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

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

Company news.

The price of Maotai Feitian continues to rise, with the 24-year Feitian (original) rising to 2,430 yuan.

According to today's news on liquor prices, the price of Maotai Feitian continues to rise. On October 6th, the 24-year Feitian (original) box rose to 2,430 yuan per bottle, and the 24-year Feitian (loose) rose to 2,310 yuan per bottle.

Wuxi Apptec and Wuxi Bio respond to sale rumors: evaluating operational options and conducting regular business reviews.

There are reports that Wuxi apptec and wuxi bio are preparing to sell some of their businesses. On October 4, wuxi apptec told reporters that they are evaluating options to continue running WuXi Advanced Therapies (high-end therapy business) in line 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.

Major US stock indices collectively rose last Friday, with large technology stocks generally up.

Last Friday, all three major US stock indices rose collectively, with the Dow Jones up 0.81% and a weekly gain of 0.09%; the Nasdaq rose by 1.22% with a weekly gain of 0.1%; the S&P 500 index rose by 0.9% with a weekly gain of 0.22%. The Nasdaq Golden Dragon Index rose by 3.05%, with a weekly gain of 11.85%.

In September, US non-farm payrolls increased by 0.254 million, far exceeding expectations.

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

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 that when the Federal Reserve holds its meeting again in November, it will cut interest rates by 0.25 percentage points. Previously, they had called for larger rate cuts, but the labor market data showing resilience in the US economy led them to abandon their previous calls.

Editor/Emily