For the global market, the Federal Reserve's interest rate cut is the biggest uncertainty that has been resolved.

Although it was unexpectedly lowered by 50 basis points, for the domestic stock market, it is actually a great boon.

Today, A-shares saw 4,800 stocks rise throughout the day, with the Shenzhen Component Index and the ChiNext Index both rising more than 2% at one point, with a total transaction volume of 627 billion yuan, an increase of 147.7 billion yuan compared to the previous day.

The most aggressive gains were in Hong Kong stocks, with the Hang Seng Index rising more than 2% to reclaim the 18,000 point mark, the Hang Seng Technology Index rising more than 3%, and many industry giants in consumer, technology, and resources sectors seeing gains exceeding 5%.

Among the sectors, the two-city consumer goods sector surprisingly won the "best of the game," with the concept gain list being entirely dominated by various consumer markets.

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In addition, education, healthcare, real estate, and computer sectors also showed significant strength, and even the financial and energy sectors, which were initially down in the morning, were pulled up again.

It is clear that with the uncertainty resolved, the market's risk appetite has significantly increased.

From the SSE 50, CSI 300 to the CSI 1000/2000 and micro-cap indices, each is stronger than the last.

According to institutional views, the market's reaction to the Federal Reserve's unexpected rate cut is clearly biased towards the positive, and the risk appetite has also begun to increase significantly.

After the rate cut, both the USD/CNY and USD/CNH broke through their lows, setting new highs for more than a year.

As of 2 PM, the USD/CNY reached 7.064, and the USD/CNH reached 7.0642, both setting new highs for more than a year.

The number of short essays circulating in the stock market today is also significantly higher than before, with some due to concerns about the "pager bomb" incident leading to a large number of orders from Middle Eastern customers for domestic communication equipment, some about "economic-related ministries working overtime during holidays," some about the LPR potentially being reduced by 20 basis points on Friday, some saying that the existing mortgage interest rates will start to be reduced next Monday, and even some rumors about subsidies for families with multiple children.

These short essays circulating online are difficult to verify.

Regardless, they at least reflect the obvious restlessness of capital and stock investors.

In the early trading session, A-shares were initially dragged down by the financial sector that had risen sharply the day before, but soon, with a continuous influx of funds, various small and medium-sized growth sectors began to rise first.

For example, the pager bomb incident has indeed been widely discussed on social media in recent days, with many topics substituting Chinese electronic products, causing the stock prices of domestic mobile phone chains and communication equipment manufacturers to fluctuate.

Rumors about a new round of stimulus policies have been circulating in the market.

In fact, the State Council Information Office has started a series of themed press conferences on "promoting high-quality development" from today, with the Ministry of Natural Resources speaking today, mentioning land policies, mineral resources, and economic circle construction.

Zou Lan, the head of the Monetary Policy Department of the People's Bank of China, has already indicated at a press conference of the State Council Information Office that policy adjustments such as reserve requirement ratio cuts and interest rate cuts still need to observe the economic trend.

"The policy effect of the reserve requirement ratio cut at the beginning of the year is still ongoing, and the average required reserve ratio of financial institutions is about 7%, which still has some room."

Today, the Economic Reference News reported in the article "Central and Local Joint Policy Strengthening, Fourth Quarter Stable Growth Has Support" that journalists learned that to grasp the economic work at the end of the third quarter and the fourth quarter, and strive to complete the annual economic and social development goals and tasks, a number of policies will further increase their efforts, including the further implementation and refinement of policies such as "two new" policies, and more incremental measures will be brewed in the fields of money and finance.

Under the stimulation of the above aspects, the market sentiment quickly rebounded, and funds began to pour into the stock market, even the futures contracts of bulk commodities such as glass, copper, aluminum, tin, and nickel also rose sharply.

Many securities institutions believe that with the Federal Reserve's unexpected rate cut, it opens up more space for domestic monetary policy tools.

It was already expected that the LPR would be reduced by about 20 basis points in September, and now with the assistance of the Federal Reserve, there is basically no suspense in reducing the LPR.

At the same time, major banks have completed the preparation for lowering deposit interest rates in the first half of the year, so the expectation of reducing existing mortgage interest rates is also continuously strengthening.

However, for the rumored upcoming mortgage conversion, it may not be so fast, as there are still many processes and norms that need to be discussed clearly, and institutions expect that it may not be implemented until the first quarter of 2025.

But for the real estate market, which has been pessimistic for a long time, this is already a rare good news.

The recent statement by the responsible person of the relevant department of the People's Bank of China also confirmed this point: the next step, monetary policy will be more flexible and moderate, precise and effective, increase regulatory efforts, accelerate the implementation and effectiveness of financial policy measures that have been introduced, and start to introduce some incremental policy measures to further reduce the financing and credit costs of enterprises and residents.

On the other hand, whether it is reducing the interest rates of existing loans or converting mortgages, it can save a certain amount of cash for the existing loan home buying group every month.

According to the article "Against the Trend Rise!

Style Switch!"

mentioned yesterday, if the loan interest rate can be reduced by 80 basis points through operation, it can save about 300 billion yuan of expenses per year (not necessarily so much).

For residents, this is cash that can be freely disposed of.

In addition, in recent years, various local governments have been planning to issue various consumer subsidies (the policy level is also discussing a larger consumption stimulus plan and is expected to be introduced soon), and the market expects that the combination of the two will greatly boost the basic consumption of various industries.

This may be the reason for the comprehensive outbreak of the traditional large consumer goods sector in the A and Hong Kong stock markets today.

After the market, the National Development and Reform Commission press conference introduced a series of heavy-weight instructions, further confirming the market's speculation, including: timely introduction of a batch of strong operability, good effect, and accessible incremental policy measures; will work with relevant departments to accelerate the improvement and implementation of fiscal, financial, and land policies to support new urbanization; cooperate with relevant departments to study and propose specific policy measures for household registration system reform and accelerate the construction of affordable housing; comprehensively promote the normalization of real estate investment trust fund (REITs) projects in the infrastructure field; play the guiding and leading role of government investment in social investment, and improve the long-term mechanism for private enterprises to participate in major national construction projects.

In terms of consumption that the market is more concerned about, the National Development and Reform Commission clearly stated that it will work with various departments and places to deeply implement employment priority policies, increase residents' income through multiple channels, and continuously improve residents' consumption capacity; use long-term special government bond funds to support consumer goods to replace the old with the new, further promote the quality and expansion of consumption in cultural tourism, education, medical care, elderly care, child care, and domestic services, actively create new consumption scenes, and cultivate new growth points of consumption.

From the process of policy release, after the National Development and Reform Commission, the next step is for various places to introduce more specific measures according to local conditions (currently, some cities have introduced some plans).

Combining with the rumors of "overtime meetings and discussions" in the short essay, we may see more specific consumption stimulus plans in the fourth quarter, and at that time, the large consumer goods sector may continue to welcome speculation hotspots.

So far, the PE valuation of the Shanghai Composite Index has fallen to 12 times, reaching a new low since 2010, the PE of the CSI 300 is only slightly more than 10 times, the CSI 1000 and other sectors are also at historical lows, and even the high valuation of the ChiNext Board PE is only 23 times, approaching the historical lowest level.

Looking at the industry, the PE level of large sectors such as banking and insurance, coal, non-ferrous metals, pharmaceuticals, food and beverages, and home appliances has generally been at a lower level since 2010, and some are even the lowest in history.

From the perspective of PB, the PB of almost all first-level industries in A-shares has already been the lowest.

At the individual stock level, there are as many as 1,500 stocks in A-shares with a price-earnings ratio greater than 0 and less than 20 times, and even among those with a market value greater than 10 billion and a price-earnings ratio less than 10 times, there are more than 140 stocks.

Many industry leaders have fallen more than 70% from the high point in 2021, and the valuation has fallen to a new low since the listing, which is a rare situation in the history of A-shares.

This kind of valuation situation can be described as a cry everywhere, no one is spared, and it can be said to be much worse than the Hong Kong stock market.

Although many institutions still judge based on the current several key macro data, they still come to a pessimistic tone.

However, A-shares have been severely oversold, and now with the Federal Reserve's substantial interest rate cut and the strong sentiment that the country is accelerating the introduction of a new batch of strong stimulus policies, the market is naturally ushering in an oversold rebound.

Many securities institutions generally believe that with the Federal Reserve starting the interest rate cut cycle, the market's risk appetite will gradually increase, and A-shares may speed up the bottoming process under the joint stimulation of further monetary liquidity and a series of economic stimulus policies.

For investment, conservative investors can continue to focus on high certainty and have completed the callback and re-attractive valuation dividend direction.

For long-term investors, they can also focus on the leaders of industries such as medical, consumer, technology, and materials that have been significantly oversold and have shown a recovery in performance.