On October 14, 2023, China’s A-shares saw a significant increase, with major indices rising by over 2% and more than 5,000 stocks finishing in the green.
By the end of the trading day, the Shanghai Composite Index closed at 3,284 points, reflecting a gain of 2.07%. The Shenzhen Component Index ended at 10,327 points, up 2.65%, while the ChiNext Index reached 2,155 points, up 2.6%. The total trading volume for both exchanges was approximately 16.35 billion yuan, marking an increase from the previous trading day.
Shen Zhengyang, an analyst at Northeast Securities, attributes the day’s market upswing to two main factors. Firstly, following recent major adjustments, the pessimism among some investors has been largely alleviated, providing a momentum for market stabilization and rebound. Secondly, there have been numerous positive signals from policymakers, particularly regarding the recent encouraging statements from China’s Ministry of Finance about fiscal policy, which have bolstered investor confidence.
On October 12, Minister of Finance Lan Fo’an announced that the Ministry would soon roll out a series of targeted policy measures, primarily aimed at supporting local governments in managing debt risks, among other areas. He emphasized that these four points are just part of broader counter-cyclical adjustments, noting that there are other policy tools under consideration, including significant room for increased borrowing and higher deficits by the central government.
Sector-wise, the majority of A-share sectors experienced gains on that day. According to data from financial service provider Dongfang Caifu, the aerospace and software development sectors led the charge, rising 7.95% and 6.96%, respectively. Additionally, the asset management company (AMC) sector saw a strong performance, with stocks like Guangda Jiabao, Yilida, Yukaifa, and Yuexiu Capital hitting the daily limit up.
