On October 11th, the market fluctuated and declined throughout the day. The Shanghai Composite Index (SSE) once fell below 3,200 points during the session, with the ChiNext Index leading the decline. By the close, the SSE fell by 2.55%, the Shenzhen Component Index fell by 3.92%, and the ChiNext Index fell by 5.06%.

In terms of sectors, cross-border payment, precious metals, and ST (Special Treatment) stocks were among the top gainers, while wind power, semiconductors, CRO (Contract Research Organization), and newly listed stocks were among the top losers.

Overall, there were more declines than gains among individual stocks, with over 4,800 stocks falling across the market. The total transaction volume for the Shanghai and Shenzhen markets was 1.57 trillion yuan, a reduction of 571 billion yuan compared to the previous trading day.

With today's closing, the first trading week of October for A-shares has also come to an end. Looking at the trend of the Wind All A Index, starting from Tuesday, which was dubbed "peak at the opening," the market has closed lower for four consecutive days, forming a nearly "bare-headed bear" weekly K-line.

Although the market has only slightly given back the gains made before the holiday, investors who entered at the peak on Tuesday without a profit cushion may not be in a good state of mind at the moment.

Some opinions suggest that as the weekend approaches (although Saturday is a working day), market panic can be slightly settled; coupled with the market volume still being considerable, and the expectation of a special press conference by the Ministry of Finance, the likelihood of A-shares going "straight up and down" is extremely low.

Returning to today's market. Overall, with the index and individual stocks fluctuating, there is a trend of further contraction in the transaction volume of both markets. Specifically, the highlights of today's market were mainly concentrated in the following areas.

Securities stocks were divided, with CICC (China International Capital Corporation) touching the daily limit-up in the afternoon.

In the morning, Haitong Securities and Guotai Junan continued to hit the daily limit-up, and Hongta Securities also quickly sealed the board.The overall performance of the securities brokerage sector is a mixed bag.

Firstly, Tianfeng Securities, which had been on a streak of consecutive daily limit-ups (yesterday it reached the upper limit and then the lower limit), was firmly at the daily limit-down in the morning. It was not until the afternoon, when CICC (China International Capital Corporation) saw unusual activity and hit the daily limit-up, that Tianfeng Securities briefly rebounded.

Secondly, the unusual activity and daily limit-up of CICC briefly led to a slight recovery in the securities brokerage sector and the broader market. However, this was followed by a more significant decline. CICC's own daily limit-up was also unstable, barely holding on until the end of the trading day.

In terms of news, according to media reports, currently, CITIC Securities and CICC have submitted a proposal for "Securities, Fund, and Insurance Company Swap Facilities," with CITIC Securities reporting a quota of approximately 10 billion yuan. It is noteworthy that among securities companies, only CITIC Securities and CICC have obtained the qualification as primary dealers in the People's Bank of China's open market operations.

Thirdly, East Money, which has consistently topped the turnover list, closed up by 1.46%, indicating a weak recovery effort.

In summary, the "bull market standard-bearer" has not yet been able to completely reverse sentiment, and it will also take time for other sectors to stabilize.

Fortunately, some of the strong stocks that plummeted yesterday have seen some recovery today, with Runhe Software being a key player, driving the stabilization and rebound of stocks such as Softstone and JiJi Microelectronics.

It is worth mentioning that the cross-border payment concept, which soared against the trend in the morning, also saw its gains narrow in the afternoon as the broader market weakened, but several stocks still closed at their daily limit-up.

According to the Ministry of Commerce website, on October 10th local time, during the 27th China-ASEAN Leaders' Meeting, China and ASEAN reached, for the first time, the highest level of digital economy, green economy, and supply chain interconnectivity chapters in their respective economic and trade agreements. In the field of digital economy, both sides agreed to promote the "hard connection" of digital infrastructure and enhance the "soft connection" of systems such as electronic invoices and electronic payments. They included high-level rules and provisions on personal information protection, digital trade standards, paperless trade, and cybersecurity, which will establish institutional arrangements for deepening cooperation in the digital economy.

At the meeting, the Chinese side expressed that China is willing to actively promote infrastructure cooperation with ASEAN in areas such as railways and ports, accelerate the signing and implementation of the 3.0 version of the free trade agreement, strengthen the connection of cross-border payment systems, and expand the scale of local currency settlement.New shares surge by over 2400% during the trading day, but institutions remain optimistic about the current market trend.

When the overall market is weak, speculative trading around newly listed stocks often shines brightly.

Today, the newly listed stocks on the Shenzhen Stock Exchange, N Qiangbang, and on the Beijing Stock Exchange, N Tongguan, both opened with significant gains, triggering a second temporary trading halt.

N Qiangbang's increase once expanded to 2430.99%, reaching a peak of 245.00 yuan during the trading session, setting a new record for the highest increase among new shares this year; as of the close, the increase was 1738.95%, still bringing substantial returns to investors who won the lottery for the shares.

N Tongguan opened with a 669.75% increase, with the highest increase during the trading session reaching 1183%, ranking as the third-largest increase among new shares this year. As of the close, it still rose by 731.41%.

The prospectus shows that Qiangbang New Materials is one of the largest printing plate manufacturers in China, while Tongguan Mining Construction is a national high-tech enterprise specializing in providing integrated development services and related value-added services such as construction engineering, operation management, optimized design, and technological research and development to global non-coal mines.

Of course, the funds participating in both today are likely to pay more attention to their "unrestricted price increase limit" characteristic than to their fundamentals.

For the future market, Huafu Securities pointed out that there is still room for the current A-share market trend to continue to rise.

On the one hand, from historical experience, the cumulative increase and duration of this round of market trend since mid-to-late September have not reached the central level of past major market increases.

On the other hand, since the end of September, a series of major favorable policies have been frequently introduced in China, significantly boosting market confidence, and the micro liquidity of the stock market has improved significantly. Looking forward, as market confidence is revalued, the micro fund flow with trend-following characteristics, such as public funds and foreign capital, is expected to continue to improve and to a certain extent, help form a positive cycle with the market trend.Foreign institutions have recently provided analysis on A-shares.

Morgan Stanley stated in its latest research report that last week's policy shift exceeded its expectations, including strong monetary easing, unprecedented liquidity tools to boost the stock market, and a rare statement on the real estate market to "stop falling and stabilize." It is expected that the GDP growth rate in the next two quarters is likely to improve moderately, rebounding from 3% (annualized rate) in the 2nd and 3rd quarters of this year to 5%.

Specifically for the Chinese stock market, Morgan Stanley believes that A-shares still have at least a 10% technical rebound space in the short term. The main beneficiary stocks are divided into two categories: (1) Companies in A-shares with dividend yields and free cash flow yields significantly higher than the 2.25% re-lending rate. (2) Companies in A+H shares, whose A-share prices can be boosted by recent policies, but are discounted in the Hong Kong stock market. In the coming months, if the GDP growth rate warms up and the decision-makers further introduce reflation policies, and the fundamentals of companies can be effectively improved, a more sustainable rise in the stock market may be seen. Valuations are expected to return to the level experienced during the small spring period of the stock market (November 2022 to March 2023).