Will the A-share market continue to rise?
With the start of the Fed's interest rate cut cycle, the flow of funds in the global capital market will undergo major adjustments. After the attractiveness of the US dollar weakened, large funds are looking for new channels for hedging and value-added, and the Chinese market has become the main target of capital inflows due to its relatively stable economic environment and active policy support.
Now China has launched an innovative Chinese-style quantitative easing policy in conjunction with the Fed's interest rate cut cycle: securities companies and insurance companies can pledge stocks to the central bank in exchange for government bonds,
Securities companies and insurance companies can exchange bonds for cash, and cash can be used to buy stocks... Do you smell a familiar smell here? As the central bank's chips become more and more, the market's chips become fewer and fewer, which also explains why stock prices can continue to rise in a short period of time.
A shares are currently at a critical juncture in the long-short game. With the clarification of policies, the power of the bulls comes not only from the continued support of domestic funds, but also from the return of global funds and the increase in market confidence. As the Chinese market further attracts international capital, the logic of short selling seems increasingly untenable, and the bears can only be forced to admit defeat in the continued rise.
In the future, driven by policies, funds and sentiment, A-shares are expected to continue to strengthen. In the context of global capital seeking stable growth opportunities, RMB assets, especially A-shares, are extremely attractive. As shorts continue to be pulled, the rise of A-shares is expected to accelerate further until the shorts completely surrender.
Overall, although market doubts still exist, the upward trend of A-shares has been formed. The short-selling force will definitely be completely defeated in the continuous rise. Combined with the Fed's interest rate cut cycle, the future upside of A-shares is unimaginable.
The above is only personal opinion, and there is no investment advice.#DYOR
