On October 31, the Shanghai index rose and fell, losing 2,900 points; Shenzhen component Index afternoon concussion turned green, the GEM index rose 2% in the afternoon, the increase narrowed; The Kechuang 50 was strong, up nearly 3 per cent in intraday trading; The turnover of the two markets shrank slightly, returning to below 900 billion yuan, and the net sale of northbound funds exceeded 9 billion yuan.

As of the close, the Shanghai Index was down 0.77 percent at 2,893.48 points, the Shenzhen Component Index was slightly down 0.05 percent at 10,397.04 points, the chinext index was up 0.65 percent at 2,265.08 points, and the Science and Technology 50 index was up 1.67 percent. The total turnover of the two cities was 883.2 billion yuan, and the net selling of northbound funds was 9.012 billion yuan.

On the plate, smart government affairs, information security, information innovation, cloud computing, big data, software, semiconductor and other technology stocks rose, agriculture, automobiles, medicine, securities and other sectors rose, coal, tourism, logistics, real estate, banking, wine and other sectors weakened.

Citic Construction Securities pointed out that the recent market low shock correction, economic fundamentals are still expected to be weak, the continued lack of incremental funds has increased the vulnerability of the market, and the recent low performance expectations of a group of leading companies in the third quarter, as well as foreign and public institutions concentrated position exchange has further amplified the market volatility.

Looking to the future market, the agency believes that the current grinding bottom will continue. First of all, the current market has been at A historical low, the implied risk premium of A-shares has obviously exceeded the level of 90% in the past eight years, and is at the highest position in recent years, which means that the current medium and long-term allocation of A-share equity assets is extremely cost-effective, and the space for further decline is limited, so it is not appropriate to be overly pessimistic. On the other hand, affected by the above-mentioned weak fundamentals, insufficient incremental funds and other factors, superimposed possible external factors risk, investors should maintain reasonable expectations, patience grinding bottom. Finally, under the background of weak fundamental combination, it is necessary to continue to pay attention to changes in liquidity expectations and risk appetite, especially the downward trend of US Treasury interest rates, which is likely to be a potential positive factor in the future.

Source: Securities Times online