Last week, thanks to the consecutive and unexpected multi pound favorable policies, the A-share market performed well, Chinese concept stocks also surged, and global foreign institutions' outlook on Chinese assets became increasingly optimistic.
The positive impact of the Federal Reserve's loose cycle continues, with all three major US stock indices rising for the third consecutive week last week, and the S&P 500 and Dow Jones continuing to reach historic highs.
This week, the US ADP employment data and September non farm payroll data will be released, and Federal Reserve Chairman Powell will also give a speech.
Chinese concept stocks generally rise
On September 27th local time, the Dow Jones Industrial Average rose 0.33% to 42313 points, setting a new closing high. The S&P 500 index fell 0.13% to 5738.17 points, and the Nasdaq fell 0.39% to 18119.59 points. Last week, the Dow Jones Industrial Average rose 0.59%, the S&P 500 Index rose 0.62%, and the Nasdaq rose 0.95%.
Thanks to the consecutive and unexpected multi pound favorable policies, the A-share market has performed well, and popular Chinese concept stocks have also generally risen. On September 27th, the Nasdaq China Golden Dragon Index closed up about 4%, with a cumulative increase of 23.94% last week. JD's weekly increase was 37.11%, Alibaba's weekly increase was 19.96%, and Pinduoduo's weekly increase was 34.15%.
Tianfeng Securities believes that compared to the global market, Chinese assets still have cost-effectiveness. On the basis of gradually recovering expectations and gradually improving fundamentals in the future, Hong Kong stocks and Chinese concept stocks still have attractive valuations and high risk return ratios.
Foreign institutions are optimistic about Chinese assets
Scott Rubner, Managing Director and Strategy Expert of Goldman Sachs Global Markets, stated that the Chinese stock market has been strong recently, with the Nasdaq China Golden Dragon Index soaring. The Chinese stock market should become an important component of investors' investment plans.
Wang Ying, Chief Equity Strategist of Morgan Stanley China, stated that policy support measures will help improve investor sentiment and liquidity, and drive positive responses from onshore and offshore markets in the short term. A-shares may outperform the entire emerging market.
Liu Peiqian, Asia economist at Fidelity International, stated that the significant positive policies introduced on September 24th have actively boosted the market and will improve the market situation in the short term.
David Chao, a strategist at Jingshun Asset Management, said, "Investors' fear of missing out (FOMO) is on the rise as the Chinese stock market has risen nearly 10% in the past three days
He believes that the upward trend of the Chinese stock market may continue. He mentioned, 'The Chinese market is momentum driven, and I believe the current uptrend has some similarities to the 2014-2015 uptrend.' As the US dollar continues to weaken under the push of the Federal Reserve's interest rate cuts, he expects' there may be a rotation from expensive and crowded global technology trading to cheaper emerging market assets. '.
This week's non farm payroll report hits hard
Powell will give a speech at the National Association for Business Economics on Tuesday at 1am Beijing time, and market participants will closely monitor to obtain more clues about future monetary policy trends.
The US ADP employment, known as the 'small non farm payroll', will be released on Wednesday this week, while the more heavyweight US September non farm payroll data is scheduled to be released on Friday this week. If the job market is weaker than expected, the Federal Reserve may accelerate the pace of interest rate cuts.