A-share market experiences a long-awaited surge, akin to a "dry spell meeting a timely rain," with an epic rally.

On September 24th, the market saw a significant increase throughout the day with high trading volumes, and all three major indices rose by more than 4%.

Specifically, the Shanghai Composite Index (SCI) rose by over 100 points, marking the largest single-day increase since July 6, 2020.

By the close, the SCI had risen by 4.15%, the Shenzhen Component Index by 4.36%, and the ChiNext Index by 5.54%.

Overall, there were more gains than losses, with over 5,100 individual stocks rising across the market.

The total trading volume for the Shanghai and Shenzhen markets was 971.3 billion yuan, an increase of 420.3 billion yuan compared to the previous trading day.

In terms of sectors, finance, steel, securities, and liquor led the gains, with no sectors experiencing a decline.

The A-share market is abuzz with rare positive news, causing a significant increase in stock prices.

By the close on the 24th, the SCI was up 4.15%, the Shenzhen Component Index up 4.36%, and the ChiNext Index up 5.54%.

On the market, all major A-share sectors experienced a long-awaited general rise, with all 31 of the first-tier industries listed by Shenwan Securities rising.

Among them, the food and beverage, non-bank finance, steel, coal, and beauty care sectors led the gains, all exceeding 5%.

The food and beverage sector exploded in the afternoon, with an overall increase of 6.73%, leading the industry sectors.

In terms of individual stocks, Pinwo Food rose by 13.85%, Huangtai Liquor hit the daily limit of 10%, and Kweichow Moutai, Anjoy Food, and Luzhou Laojiao all rose by more than 8%, with Three Squirrels, Happy Family, and Wuliangye following suit.

The non-bank finance sector had a strong day, with a sector-wide surge in daily limit hits, and an overall increase of 6.05%.

More than ten stocks including Pacific Securities, Capital Securities, Hongye Futures, and Jiuding Investment hit the daily limit.

The steel sector remained strong throughout the day, with an overall increase of 5.6%.

In terms of individual stocks, Shengdexintai hit the daily limit of 20%, and Zhongnan Shares, Linggang Shares, and Anyang Steel, among others, hit the daily limit of 10%.

In terms of concept stocks, liquor, ChatGPT concept, new industrialization, hundred-yuan stocks, and CPO concept sectors all rose by more than 6%, with F5G concept, securities concept, and optical communication modules following suit.

The significant boost in A-shares today is inseparable from the substantial policy support.

In terms of news, at the State Council Information Office press conference held this morning, a series of major announcements were made, including reserve requirement ratio cuts, reductions in existing mortgage loan interest rates, the creation of special re-lending facilities for stock buybacks and increases, support for Central Huijin Investment to increase its holdings in the capital market, and the study of creating a stabilization fund, among other major policy moves.

"Today's package of policies aimed at easing money supply, stabilizing real estate, and stabilizing the economy, with an intensity beyond market expectations, will play an important role in boosting market confidence, stimulating the vitality of market entities, stabilizing credit levels, and enhancing the sustainability of financial support for the real economy, sending a positive signal of strengthening policy coordination and focusing on achieving the annual economic growth target," said Wen Bin, Chief Economist at China Minsheng Bank.

"Today's policies have three prominent highlights," said Xia Fengguang, Fund Manager at Rongzhi Investment.

The first is innovation.

There is not only the traditional reserve requirement ratio cut but also support from the central bank's loans to financial institutions, and even support for listed companies to repurchase shares.

The second is the strong linkage of policies, with various departments working together to unblock many links.

The third is not just issuing policies but also holding a State Council press conference to strengthen communication with the market and respond to market concerns.

Specifically, Hu Mohan, Fund Manager at Mingze Investment, pointed out that first, the central bank will take measures to reduce the reserve requirement ratio and policy interest rates, which will increase market liquidity, and there may be further cuts in the future.

At the same time, reducing existing mortgage loan interest rates and unifying the minimum down payment ratio for mortgages will reduce the mortgage burden on ordinary people, help curb the trend of early mortgage repayments, and may promote a rebound in consumption.

"The most critical aspect is that the central bank has introduced innovative monetary policy tools to support the capital market for the first time.

This includes the newly established special re-lending facility for stock buybacks and increases, as well as the creation of swaps for securities, funds, and insurance companies."

Hu Mohan said that these measures will significantly improve the convenience for relevant institutions to obtain funds and restrict swap financing for investment in the stock market, which will inject liquidity into the securities market and help better play the role of financial institutions in stabilizing the market.

How will the market perform in the future?

The release of several major policies, can it reverse the weak trend of A-shares?

"Today's strong and unexpected policy will definitely reverse the weak trend in the short term, and even has the opportunity to bring about a considerable medium to long-term rebound," said Liu Yan, Chairman of Anjue Assets.

However, Liu Yan also warned that the future market trend will still be affected by various domestic and international factors, including the macroeconomic environment, corporate profitability, changes in domestic and international business environments, and investor sentiment, among other factors.

In the long run, investors still need to maintain patience and maintain a cautious and optimistic attitude.

Looking forward to the future, Pan Jun, Investment Manager at Cheese Fund, said that he is cautiously optimistic about the market.

On the one hand, as recent real estate stimulus policies are gradually implemented, and as the central bank and other departments introduce a series of measures to promote the healthy development of the capital market, the domestic economy is expected to gradually stabilize, which is conducive to the recovery of investor confidence.

On the other hand, the Federal Reserve cut interest rates by 50 basis points in September, and it is expected to continue cutting rates in the future.

The domestic policy space has further opened up, and more stimulus policies may be introduced, providing support for the macroeconomic fundamentals.

In the future, as the fundamentals recover, foreign capital will restart the trend of inflows into the A-share market.

Zhejiang Securities Research Report pointed out that this financial policy combination actively addresses hot issues such as financing costs, real estate, and the capital market, and is expected to support stable economic growth and improve market expectations.

From the perspective of major asset classes, the stock market should not be pessimistic, and it is recommended to actively seize the rebound opportunities, focusing on high dividend dividend assets under the background of asset scarcity.

In the fixed income field, the bond bull market still has room to continue, and it is expected that the yield on 10-year government bonds will show a trend of fluctuating and gradually falling, and it is difficult for interest rates to rise unexpectedly within the year.

In terms of investment advice, Pan Jun said he is optimistic about the pharmaceutical and biological, consumer, and internet sectors.

Because the long-term industry space is relatively clear, with stable and rigid demand, and there are many excellent leading companies with industry pricing power, the performance itself has the characteristics of stable growth.

Against the background of the overall market correction, the valuation is gradually becoming reasonable or even undervalued.

When the world enters a cycle of declining interest rates, it is also beneficial to the industry's fundamentals and capital.