On Monday (October 21), the three major A-share indices rose together, with the Beijing Stock Exchange 50 Index achieving a four-day streak of gains, soaring by 13% and hitting a new historic high, with a cumulative increase of over 102% in the past month. Stocks on the Beijing Stock Exchange rose collectively, with Tianma New Materials hitting the daily limit for four consecutive days.
Recently, the Ministry of Industry and Information Technology and the China Securities Regulatory Commission jointly launched the third batch of regional equity market "Specialized and Innovative" special boards and signed a strategic cooperation agreement with the Beijing Stock Exchange to further facilitate the financing channels for specialized and innovative small and medium-sized enterprises. Additionally, the Ministry of Industry and Information Technology has initiated the "One Month, One Chain" financing promotion activity for small and medium-sized enterprises, promoting precise connections between financial institutions and SMEs in key industrial chains to enhance the support of the capital market for these enterprises.
Analysis by Galaxy Securities indicates that recent active trading on the Beijing Stock Exchange, combined with continued high market attention and steady progress in new stock issuances, suggests that the Beijing Stock Exchange sector holds strong investment value. Looking forward to the second half of 2024, investors are advised to focus on the following four directions: firstly, growth companies with high performance growth rates and strong R&D investment; secondly, stable companies within state-owned and central enterprises, especially those with high return on net assets and low operational risk; thirdly, companies that improve performance through fundraising projects, capacity release, and external acquisitions; fourthly, enterprises that enhance shareholder returns and have high dividend yields.
From a macroeconomic perspective, with the country's continued policies supporting SME financing, the capital market's vibrancy is expected to increase further. The involvement of financial institutions has opened more channels for SME financing, and the active trading level is expected to remain high in the short term, driving the stock market further upwards.
