Category: Flash News

On March 3rd, last week, the main indexes of A-shares and Hong Kong stocks fluctuated greatly, and popular technology sectors such as artificial intelligence (AI), which were originally strong, showed significant adjustments. Multiple public funds institutions believe that the main reason for market fluctuations is the re fermentation of external disturbance factors and the significant increase in the market in the early stage, resulting in some funds being sold out at high prices. Looking ahead to the future, the market may switch to undervalued varieties, and previously relatively unpopular pro cyclical sectors may be favored by funds. The technology sector may continue to adjust in the short term, but it remains the main investment focus of the market this year. (China Securities Journal)

On March 3rd, recently, A-shares and Hong Kong stocks have experienced a pleasing upward trend. The index of equity mixed funds has reached a new high since September 2023, and some equity funds established in the past two years have successively achieved new net asset values. During this period, investors who purchased the funds have gradually realized profits. However, under the rise in fund prices, some investors may be a bit “afraid of heights” and choose to settle for safety, including stock ETFs that were previously heavily subscribed but failed to continue their “cash flow” trend, with a net outflow of nearly 60 billion yuan since the beginning of the year. A reporter’s investigation found that although many funds with rising net asset values were redeemed, there were still many funds with high net asset value increases that received a large influx of funds in the first quarter of this year, with their scale repeatedly reaching new highs. (Securities Times)

On March 3rd, in early March, the capital market welcomed the first batch of listed ETFs (exchange traded funds). As of the close on February 28th, 11 newly established ETFs have confirmed their listing dates. On March 3rd, 4th, and 5th, 1, 1, and 9 ETFs were listed on the exchange respectively, with a cumulative size of 17.022 billion yuan. With the addition of three newly established ETFs whose listing dates are yet to be determined, the total number of ETFs listed in the first batch in March will reach 14, with a cumulative size of 18.712 billion yuan. The performance of newly listed ETFs is impressive, and existing ETFs are not inferior either. Their trading volume continues to rise, and their capital structure continues to optimize. From the weekly data, it can be seen that since the industry stock ETF achieved net inflows in late January, this trend has been maintained for five consecutive weeks. The net inflow amount has gradually increased from 397 million yuan at the beginning, and has now exceeded 5 billion yuan. Among them, industry stock ETFs with net inflows of funds, such as robot ETFs, innovative drug ETFs, and chip ETFs, are all concentrated in the technology market area that is currently receiving much attention in the market. (Securities Times)

On March 3rd, the recently held symposium for private enterprises, like a spring breeze and rain, injected strong confidence and momentum into the development of private enterprises. Private enterprises account for over 92% of the total number of enterprises in China and are an important component of the country’s economic development. As the world’s second-largest economy, China’s annual contribution to global economic growth is around 30%, making it the largest driving force for global economic growth. A clear development path and efficient communication methods broaden the path for private enterprises to go global, and also make the world optimistic about China. The symposium is not only a policy declaration, but also a joint discussion on solving the pain points and difficulties of enterprise development. This direct and efficient communication method demonstrates the Party and the state’s concern for the practical difficulties faced by private enterprises and their determination to solve them. From the Central Economic Work Conference held at the end of 2024 to the recent symposium on private enterprises, positive signals supporting the healthy and high-quality development of the private economy have been continuously released, which has also made foreign institutions full of expectations for the Chinese economy. They are optimistic about China’s policy environment, industry investment value, as well as the improvement of China’s economic market mechanism, strengthening of corporate governance, and the potential for long-term development. Overseas investment banks are calling for a “reassessment” of China’s economic advantages, and many overseas capital have begun to significantly increase their holdings of Chinese assets. China’s economic strength, policy advantages, and market vitality have given the international community more confidence in China’s economic development path and future prospects, and a clearer understanding of the important role China plays in the global economy. In the current turbulent international environment, it will further strengthen China’s economic ties with the world and promote global economic recovery. (Economic Daily)

On March 3rd, leaders from multiple countries gathered in London for a summit on March 2nd local time to discuss the Ukrainian crisis and European defense issues. At the press conference after the meeting, Polish Prime Minister Tusk said that the whole Europe was facing great challenges, and he looked forward to “the upcoming peace negotiations on the Russia-Ukraine conflict”, even if the process might not be smooth. Tusk said that Europe must take on more and more responsibilities and enhance its own strength. Tusk hopes that more countries will implement the requirement of increasing defense spending. According to reports, Poland’s military spending will account for approximately 4.12% of GDP in 2024 and will increase to 4.7% in 2025, the highest proportion among NATO member countries. (CCTV News)

On March 3rd, it was reported that both the policy of guiding medium and long-term funds into the market at the beginning of the year and the recent private enterprise symposium have conveyed strong positive signals that the capital market is expected to contain more investment opportunities this year. The equity investment manager of a large insurance institution in Shanghai recently expressed his optimistic attitude towards the capital market to reporters. Since 2025, with the implementation of a series of policies such as increasing investment ratios, fully implementing long-term assessments, and promoting the second batch of long-term stock investment pilot projects, the space for insurance investment in the capital market has been opened up. In the eyes of industry insiders, with the continuous decline in market interest rates, policies have opened up space for equity investment in insurance funds. In the future, insurance funds are expected to increase their proportion of equity asset allocation and continue to be the main force of “long-term investment” in the capital market. (Shanghai Stock News)

On March 3rd, local bond issuance welcomed a “good start”. Data shows that in the first two months of this year, a total of 1863.296 billion yuan of local bonds were issued nationwide, reaching a new high in nearly three years (944.411 billion yuan in the same period of 2024 and 1219.631 billion yuan in 2023), a significant increase compared to the same period last year. Since the beginning of this year, thanks to the pilot program of “self audit and spontaneous” special bond projects to improve issuance efficiency, as well as the accelerated promotion of stock implicit debt replacement by local governments, the issuance of local bonds, especially new special bonds and refinancing special bonds, has significantly accelerated. “Wen Bin, chief economist of Minsheng Bank, said that this will help expand effective investment and alleviate local fiscal pressure. (Securities Daily)

On March 3rd, the Jordanian Ministry of Foreign Affairs and Overseas Chinese Affairs issued a statement strongly condemning Israel’s obstruction of humanitarian aid entering the Gaza Strip. The statement stated that Israel’s decision to close land crossings for the transportation of humanitarian goods is a blatant violation of international law and international humanitarian law. The Jordanian Ministry of Foreign Affairs and Overseas Chinese Affairs emphasized that the Israeli government’s decision seriously violates the ceasefire agreement and may lead to further deterioration of the situation in Gaza, calling on Israel to stop using hunger as a weapon. Jordan calls on the international community to take legal and moral responsibility, demanding that Israel continue to abide by the ceasefire agreement, ensure that all stages of the ceasefire are implemented, and open designated border crossings for the delivery of aid to Gaza. (CCTV News)

On March 3rd, UN Secretary General Guterres issued a statement through a spokesperson urging all parties to make every effort to prevent the resumption of hostilities in Gaza. He called for humanitarian aid to enter the Gaza Strip and for the release of all detainees.

On March 3rd, the US Social Security Administration announced on March 2nd local time that the agency plans to cut 7000 jobs and reduce its regional offices from 10 to 4. In addition, the US Social Security Administration will provide eligible employees with the option of early retirement and voluntary resignation benefits. Employees who wish to voluntarily resign must make a decision before March 14th. (CCTV News)