A50 made a dramatic move in afternoon trading!
In the afternoon session, A50 suddenly shot up in a straight line, with gains rapidly expanding to 0.7% at one point before pulling back. The index showed a clear pattern of surging high then retreating. The Hang Seng Tech Index, which had declined in the morning, also saw a significant rebound in the afternoon. A-share technology stocks continued their strong performance, with the STAR 50 Index expanding its afternoon gains to over 4%.
During this process, two key developments deserve attention: First, the central bank announced that on September 22, it conducted 300 billion yuan worth of 14-day reverse repo operations through fixed quantity, rate bidding, and multiple price winning methods. Second, positive technology sector news continued to flow, with rumors about Hygon Information circulating in the afternoon, while SMIC and other stocks provided substantial support to the indices.
**Straight-Line Rally**
A50 surged in a straight line during the afternoon session, significantly outperforming the broader A-share indices.
A-share technology stocks moved higher in tandem, with Hygon Information jumping over 14% on positive rumors. The GPU concept sector accelerated its advance in the afternoon, with Sugon hitting the daily limit, and Cambricon pulling up 4% in short-term trading. SMIC's A-shares once rose over 6% to 128.78 yuan per share, hitting a new record high. The STAR 50 Index once gained over 4%. During this process, the Hang Seng Tech Index also saw a significant rebound. In terms of index contribution, Hygon Information, Cambricon, and SMIC made the largest contributions to the SSE 50.
On the macro front, the central bank announced that on September 22, it conducted 240.5 billion yuan worth of 7-day reverse repo operations through fixed rate and quantity bidding methods, with an operation rate of 1.40%. The bid amount was 240.5 billion yuan, and the winning amount was 240.5 billion yuan. Simultaneously, it conducted 300 billion yuan worth of 14-day reverse repo operations through fixed quantity, rate bidding, and multiple price winning methods. The last time the central bank conducted 14-day reverse repo operations was January 27, marking the resumption of 14-day reverse repo operations in the open market after nearly eight months. According to Wind data, 280 billion yuan worth of reverse repos matured today, resulting in a net injection of 260.5 billion yuan for the day.
Analysts believe that launching 14-day reverse repo operations at this time provides advance liquidity for the holiday period, demonstrating a moderately accommodative monetary policy stance. This helps further alleviate institutions' precautionary funding needs before quarter-end and the long holiday, ensuring stable liquidity across quarters and holidays.
Structurally, positive developments in the technology sector continued to emerge. Rumors about Hygon Information's collaboration with a major company circulated widely in investment groups during the afternoon. Zuckerberg stated he would rather waste hundreds of billions of dollars than fall behind in the AI field. OpenAI, facing computing power shortages, plans to spend $100 billion over five years to lease backup servers. The Financial Times reported that China is rapidly building large AI data center clusters. According to The Information, OpenAI has reached an agreement with Luxshare to jointly produce future OpenAI devices. OpenAI is recruiting hardware/design/supply chain talent from Apple, aiming to launch its first batch of devices by the end of 2026 to early 2027.
**Pre-Holiday Outlook**
So how will the market perform before National Day? Analysts believe that over the past two trading days, margin financing has already receded, meaning the historical pattern of margin financing retreat before long holidays is repeating. Therefore, A-shares will likely continue to show a volatile and converging trend before the holiday, with margin financing potentially seeing some profit-taking actions. Trading volume will gradually contract, and structural market conditions will continue to play out. In such market conditions, the overall state will be relatively stable, which is more beneficial than harmful for future market performance.
Xia Fanjie from CITIC Securities believes market sentiment remains generally elevated, with focus on core independent trend stocks. Overall, the market is still at high levels without clear signs of topping out or significant pullbacks. Rotation among previously popular sectors has intensified, with indices generally in a sideways consolidation phase. Referring to historical pullback patterns, the eventual support level might be around the 60-day moving average. During this period, the market will likely continue to show characteristics of rotation plus high-profile stock selloffs from previous periods. It's recommended to approach the market with a sideways mindset in the short term, paying attention to sector rotation while focusing less on indices and more on individual stocks.
A research report from CICC points out that A-shares are still in a short-term adjustment period recently, without changing the medium-term trend. This round of market movement may have more "long-term" and "steady progress" conditions. For future allocation, growth style continues to show diffusion and rotation characteristics recently. Since the beginning of the year, growth style has shown diffusion (expanding from technology growth to innovative drugs, high-end manufacturing, defense, and new energy sectors) and rotation (alternating strong sectors), and these characteristics are expected to continue in future markets. As the third quarter ends, investors' attention to Q3 earnings may gradually increase. Before important policy timing, attention should be paid to medium and long-term reform and construction directions, such as sectors benefiting from supporting new quality productive forces, green development, and expanding opening-up. The dividend style remains a phased and structural performance.