Where Is The Strong Support For The A Share Market?

Affected by market concerns, the central bank raised interest rates and other factors, yesterday's Shanghai and Shenzhen Stock Markets

On the news side, the interest rate level of one year central bank bills has increased unexpectedly recently, coupled with the recent announcement of a new high price in July, raising interest rates again, and investors' risk aversion is highlighted.

Early morning property sector showed weak performance, dragging down the market, the two cities were all green.

As of yesterday's close, the Shanghai stock index reported 2559.47 points.

Feng Zhiyuan, a securities analyst in Northeast China, believes that the short-term expansion of the domestic market has become a new negative factor that restricts the market. Investors should pay more attention to the domestic inflation situation and the subtle changes in monetary policy, which is the most important factor in determining the medium term market.

The wait-and-see mentality of market investors is still relatively strong, resulting in a continuous shrinking of market capacity.

This hesitant market mentality is mainly affected by the internal and external troubles.

CITIC Securities latest strategy report pointed out that the recent market continuous shrinkage consolidation shows that in the absence of trend logic support, the market is difficult to shake off the bottom shock interval.

With the current policy expected to improve, investors will focus on the four quarter economic recovery and corporate profitability rebound.

Because of the divergence in the way the market lands, the short-term trend is expected to be dominated by structural investment opportunities.