2019-04-14

PBOC Deputy Governor Bullish on Stocks

China.org: Chinese economy 'generally stable' with stock market 'bottoming out': senior official
The stock market, which has seen a slack in the past few years, is also "showing signs of bottoming out and recovering", according to Chen.

Foreign portfolio investment into China reached a record high of 120 billion U.S. dollars last year, as international institutional investors diversified their portfolio investment and China further opened up the bond market and stock market, he said.
This story was the top headline in the finance section at iFeng: 又一次!央行副行长力挺A股:正显示触底和复苏迹象
Second, the background of the voice is different. On the one hand, since the beginning of this year, A-shares have continued to strengthen. Together with the financial data released in the first quarter of this year, the market generally expects that the economic turning point has arrived, and the signal of stabilization and recovery has been established, which is obviously good for the stock market. On the other hand, this week, A-shares entered an adjustment period. Since the 3288 points on Monday, the A-share market continued to pull back, and the general trend showed a downward trend. The northbound funds started to flow out from last Friday. The net outflow of funds from April to the present has reached nearly 8.5 billion yuan.

That is to say, although the current market is generally expected to be good, this week, the market entered an adjustment period, and there was a small-scale short-term net outflow trend in the north. In the expectation and market trend, the central bank's senior officials once again made a strong voice. This is in contrast to the pessimistic market expectations of last year's vocalization and the continued unsatisfactory performance of the stock market.
The market won't inflate itself! Buy buy buy!

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