Shanghai Composite Index Regains Lost Ground with Surge in Foreign Capital

Investing.com – On Friday (2nd), the counter-offensive horn sounded, the Shanghai Composite Index opened higher and moved higher, regaining the lost ground this week, and the weekly line rose slightly. At the same time, driven by new energy stocks, the Shenzhen Component Index and ChiNext Index rose by more than 1%. Most individual stocks rose, 3472 stocks rose, and 1608 stocks fell.

However, the performance continued to remain below one trillion yuan. Today, the turnover of the two A-share markets was 940.6 billion yuan, compared with 986.6 billion yuan in the previous trading day. However, foreign capital surged, with a net purchase of 8.534 billion northbound funds and a net inflow of 10.302 billion.

As of market close:

• Up 0.79%, closing at 3230.07 points, up 0.55% for the whole week;
• Up 1.50%, closing at 10998.08 points, up 0.81% for the whole week;
• Up 1.22%, closing at 2233.28 points, up 0.18% for the whole week;
• It fell 0.02% to close at 1053.29 points, up 1.41% for the whole week;
• At the time of writing, it was up 1.20% at 12,530.0 points.

On the board, kitchen and bathroom appliance stocks led the gains. Robam Electric (SZ:) rose 6.93%, Yitian Smart (SZ:) rose 7.01%, and Vantage (SZ:) rose 3.82%.

Real estate stocks rebounded, Vanke A (SZ:) rose 3.71%, Poly Real Estate (SS:) rose 6.01%, Gemdale Group (SS:) rose 5.12%, CCCC Real Estate (SZ:) rose 10.01%, China Merchants Shekou (SZ: ) rose 4.73%.

Building materials stocks rose sharply. Oriental Yuhong (SZ:) rose 8.22%, Kibing Group (SS:) rose 10.05%, Tubaobao (SZ:) rose 6.57%, and Jianlang Hardware (SZ:) rose 8.57%.

Lithium battery stocks rose throughout the day, Tianqi Lithium Industry (SZ:) rose 5.49%, Ganfeng Lithium Industry (SZ:) rose 3.38%, Huayou Cobalt Industry (SS:) rose 6.18%, Shengxin Lithium Energy (SZ:) Up 10.00%.

Brain-computer interface concept stocks retreated, leading the decline in the market. Zhongke Information (SZ:), Sanbo Brain Technology (SZ:), and Jiahe Intelligent (SZ:) rose by more than 8%.

Some storage chip stocks fell, BIWIN Storage (SS:) fell more than 6%, China Power Port (SZ:) fell 2.5%, Shenzhen Technology (SZ:), GigaDevice (SS:) rose 1.31%, but Tsinghua Unigroup Micro (SZ: ) rose 2.8 percent.

For today’s rebound momentum, analysts are cautious. Guo Yiming, an analyst at Jufeng Investment Consulting, said, “In the short term, the index has been continuously adjusted or multiple positive signals have emerged, while A-shares and Hong Kong stocks have rebounded across the board, and the overall upward movement of Chinese assets has brought confidence to the market. However, the recovery of sentiment still needs to be accumulated and the recovery of fundamentals still needs to be consolidated, so it is not appropriate to be too optimistic, and the overall structural market remains the same.”

He also said, “Pay attention to the difference in expectations brought about by changes in expectations. For example, domestic policies may fall short of expectations and overseas influences may exceed expectations, which will inhibit possible rebounds. The weak recovery of the superimposed economy will affect the strength of the overall upward market here. Lower your expectations appropriately.”

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Editor: Liu Chuan