Overall Market Performance
Influenced by overnight declines in US stocks and a sharp drop in international gold and silver prices, China's A-share market opened lower today across all three major indices. The FTSE China A50 index futures fell rapidly pre-market, dropping over 1.5% at one point, casting a shadow over market sentiment. Sector-wise, resource sectors like non-ferrous metals and oil & gas saw notable adjustments, while the major consumer sector showed relative resilience.
Structural Highlights: Brokers and Property
Despite broader market pressure, the brokerage sector emerged as a bright spot in the morning session, posting widespread gains. Stocks such as Jinlong Co., Ltd. (000712.SZ), Capital Securities (601136.SH), Soochow Securities (601555.SH), and Guosen Securities (002736.SZ) were among the top gainers. This may be linked to market expectations for future policies and improvements in the liquidity environment.
On another front, January housing price data released by the National Bureau of Statistics conveyed subtle signals. While year-on-year residential sales prices in cities of all tiers continued to decline, the month-on-month declines generally narrowed. Notably, the month-on-month decline in second-hand home prices in first-tier cities narrowed by 0.4 percentage points. This suggests that, supported by ongoing policies, the property market may be gradually finding a bottom, with marginal easing of downward pressure—a trend warranting close attention from investors.
Risks and External Shocks
Gold-related stocks in the Hong Kong market fell collectively, primarily dragged down by the overnight plunge in precious metal prices. Strategists noted that the sell-off might be related to programmatic trading by Commodity Trading Advisors (CTAs), and the market is awaiting US inflation data to gauge the Federal Reserve's policy path. This external shock poses pressure on related resource sectors in the A-share market.
Liquidity Watch
The People's Bank of China (PBOC) conducted a net injection of 708.9 billion yuan via open market operations this week, with a net injection of 113.5 billion yuan today, demonstrating its intent to maintain reasonably ample liquidity around the Spring Festival. Additionally, the PBOC announced it will issue RMB central bank bills in Hong Kong on February 25th, which will help stabilize offshore RMB exchange rate expectations.
Summary and Outlook
The morning session revealed clear structural divergence within the market. The counter-trend strength of brokerage stocks and marginal improvements in property data may provide some internal support. However, volatility in external markets, especially sharp swings in commodity prices, remains a risk factor requiring vigilance in the short term. Investors may focus on undervalued sectors benefiting from improved liquidity while closely monitoring further developments in domestic economic data.
This article does not constitute any investment advice. The stock market involves risks, and investment requires caution!