In the current wave of economic development, different fields present diverse development trends. The Yangtze River Delta region has been continuously deepening its coordinated development. Zhengzhou City has been actively exploring new paths for consumption. The financial consumption sector is also facing new challenges and reflections. Meanwhile, the A-share market has shown unique trends under the influence of various factors. These economic phenomena are intertwined, jointly forming A rich economic picture.
The integrated development of the Yangtze River Delta has achieved remarkable results. In 2024, its GDP exceeded 33 trillion yuan, and in the first quarter of this year, its GDP surpassed 8 trillion yuan, accounting for more than 25% of the national total. In terms of transportation construction, the “Yangtze River Delta on Rails” has been continuously advanced. The operating mileage of railways has exceeded 15,000 kilometers, and the proportion of high-speed rail mileage has exceeded half. It has moved from “interconnection and intercommunication” to “fast connection and fast passage”, promoting the deep integration of resources. The integration of scientific and technological innovation and industrial innovation is accelerating. Shanghai Zhangjiang and Anhui Hefei are creating together. The National Technology Innovation Center in the Yangtze River Delta has incubated numerous achievements. The output value of 26 national advanced manufacturing clusters has continued to rise. The signing of a series of cooperation agreements has promoted the coordinated development of the Yangtze River Delta in multiple fields and effectively transformed the region’s “soft power” into a “hard support” for development.
Zhengzhou City has boldly innovated in the field of consumption. From June 7th to 13th, the “Zhenghao Ban” platform of Zhengzhou City, in collaboration with Ganchang Jewelry, launched a special consumption subsidy activity for gold and jewelry, for the first time including the consumption of precious metals in the scope of trade-in. The event site was extremely popular. Within just three hours of its launch, the number of participants exceeded 12,000. The “401 Free” subsidy policy and the 15% special subsidy have significantly reduced the cost of replacing gold for consumers. Against the backdrop of the “extreme contrast” in China’s gold consumption market, they have provided new ideas for revitalizing existing gold assets and promoting the transformation of consumption patterns.
In the field of financial consumption, a fund investment dispute case involving elderly investors has drawn widespread attention. An 80-year-old man, Zhao, spent 1.05 million yuan to purchase funds through the Sinopec Building Branch of Ping An Bank in Guangzhou. Two years later, he suffered a loss of nearly 300,000 yuan and took the bank to court. The first instance court ruled that the bank should bear 70% of the responsibility. The second instance court, based on the principle of “the buyer bears the risk and the seller is responsible”, determined that the investor should bear all the losses on his own. This case has exposed many problems in the sale of financial products, such as the determination of banks’ obligation to inform risks and the regulation of sales to the elderly. It reminds all parties that while promoting economic development, they should pay attention to protecting consumers’ rights and interests.
In the capital market, the A-share market also attracts much attention. Last week, the sentiment in the A-share market picked up due to factors such as rising risk appetite. Major broad-based indices generally rose, with the chinext Index increasing by 2.32% for the entire week. Looking ahead, based on comprehensive institutional analysis, the A-share market is still in A window period for recovery in June. As external disturbance factors ease and internal policies to stabilize growth are continuously implemented, market risk appetite is expected to continue to recover. However, sector rotation is relatively fast, and investors need to seize structural opportunities.
In terms of overall trend analysis, Everbright Securities believes that the domestic economy is stable and policies to stabilize growth have been actively introduced. The macroeconomic performance in the second quarter will be resilient. Even if the market fluctuates, the bottom-line funds will stabilize the market. Zhongtai Securities pointed out that under the circumstances of easing external risks, stable overall policies and abundant liquidity, the A-share market is mainly characterized by volatility, with structural opportunities dominating the trading rhythm. China Galaxy Securities predicts that in the short term, market risk appetite will continue to recover, sector rotation will be fast, and the overall market will fluctuate upward. In the long term, the resilience of China’s economic fundamentals will increase, and the attractiveness of A-shares in global asset allocation will rise.
It is worth noting that last week, the style of small and medium-sized stocks was once again active. However, CITIC Securities analyzed that after the extreme performance of small and micro stocks and theme stocks in the A-share market in April and May, the current trading congestion and valuation deviation are at A high level, and there may be fluctuations. It is recommended to pay attention to the fundamental investment logic during the semi-annual report season. China Merchants Securities also believes that investors should choose small and medium-sized style stocks with marginal improvement in the growth rate of semi-annual report performance and high profit quality.
In terms of allocation directions, domestic consumption, technological growth, and some dividend assets with relatively high safety margins have become the three main lines of concern for institutions. China Galaxy Securities pointed out that assets with high safety margins are in line with the medium and long-term capital allocation needs. Technology is the main line in the medium and long term, and low-valued sub-sectors can be paid attention to. The large consumer sector under policy support is also worth paying attention to. Everbright Securities suggests paying attention to consumption directions such as household goods and food processing. Shenwan Hongyuan Securities, on the other hand, stated that the mid-term return of A-shares to an upward trend depends on the breakthrough of the technology industry trend, and investors can wait patiently for the industry’s catalysis.
Related topics:
