Summary of this issue

Key recommendations

Financial Committee: Further expand high-level two-way opening up of the financial industry

Ministry of Commerce: Confidence and Ability to keep pork prices basically stable

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Market Comments

Market Comments: The National Day holiday is approaching and market trading is light. It is recommended to pay attention to clear performance growth and estimates. Varieties with reasonable value

Macro perspective: Financial Commission: Encourage overseas financial institutions and funds to enter the domestic financial market

Security industry: The dividends of capital market reform will become a new round of valuation for securities firms Core driving factors for improvement

Futures Information

Metal Energy: Gold 347.05, down 1.29%; Copper 46930, down 0.40%; Rebar 3403, down 1.22%; Rubber 11440, down 2.56%; PVC index 6385, down 0.23%; Zheng Chun 2330, down 2.02%; Shanghai Aluminum 13960, down 0.82%; Shanghai Nickel 137920, up 0.77%; Iron ore 630.0, up 1.20%; Coke 1868.5, down 0.93%; Coking coal 1230.5, down 1.48%; Brent oil 59.83, down 0.73%;

Agricultural products: soybean oil 5922, down 1.60%; corn 1852, down 0.32%; palm oil 4748, down 0.42%; Zheng cotton 12205 , down 2.83%; Zhengmai 2360, down 1.01%; white sugar 5512, up 0.46%; red dates 10300, down 0.15%; Apple 7537, down 1.46%;

Exchange rate: EUR/USD 1.09, up 0.17 %; USD/CNY 7.12, down 0.12%; USD/HKD 7.84, up 0.03%.

2. Key recommendations

1. Financial Committee: Further expand high-level two-way opening up of the financial industry

Event: The Financial Stability and Development Committee of the State Council held a meeting on September 29 The eighth meeting pointed out that it is necessary to further expand high-level two-way opening up of the financial industry, encourage overseas financial institutions and funds to enter the domestic financial market, and enhance the vitality and competitiveness of our country's financial system.

Comment: In recent years, the pace of opening up of my country's capital market has been accelerating. After A-shares were included in MSCI, FTSE and other indices, the weight has also been increasing. Overseas funds are becoming an important source of new funds in the market. . The continued inflow of foreign capital will bring huge changes to the investor structure and investment style of A-shares. Paying attention to fundamentals, value investing will become an important investment strategy in the market.

(Investment consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

2. Ministry of Commerce: Confidence and ability to maintain basically stable pork prices

Event: 9 On March 29, Vice Minister of Commerce Qian Keming said at a press conference that the central reserve of frozen pork is currently in total 30,000 tons, and at the same time, pork imports are being expanded. From January to August, 1.164 million tons of pork were imported. Last week (September 16-22), the average wholesale price of pork was 36.4 yuan per kilogram, a slight decrease from the previous week. At present, various departments and localities are promoting the accelerated recovery of pig production capacity, adjusting pork imports and reserves, and increasing the market supply of beef, sheep, and chicken. "Please rest assured that we have the confidence and ability to ensure the supply of the meat market and keep the price of pork basically stable."

Comment: The rapid rise in pork prices has played a major role in promoting CPI and has also had a negative impact on people's livelihood. It has a certain impact, so stabilizing pork prices is a very important focus of the policy. However, it should also be noted that since the African swine fever vaccine will not be quickly available in the short term, pork prices will remain high and volatile for a long time. Therefore, the profits of pig breeding companies are expected to maintain rapid growth. In the short term, the value of allocations will increase after the stock prices of related companies show a significant correction. .

(Investment Consultant Zhong Yanling’s registered investment consultant certificate number: S0260613020024)

3. Market Comments

Market Comments: The National Day holiday is approaching, and the market trading is light. It is recommended to focus on varieties with clear performance growth and reasonable valuations

With the National Day holiday approaching, market trading is light and wait-and-see sentiment is strong. The index is expected to fluctuate within a small range on Monday. In view of the fact that the net inflow of northbound funds hit a record high in September and the stabilization and rebound of bank stocks blocked the short-term market downward space, in terms of operation, we should focus on the index and individual stocks, and strengthen the band operation. It is recommended that on dips, focus on varieties with clear performance growth and reasonable valuations. It is recommended to pay attention to electronics, communications, military industry, finance and high-volume stocks on the right side of the bottom, and avoid stocks that have experienced excessive gains in the early stage and stocks that compensate for losses. There are risks in the stock market, so investment needs to be cautious.

(Investment consultant? Gu Zhixiong? Registered investment consultant certificate number: S02606611020066)

Macro perspective: Financial Commission: Encourage overseas financial institutions and funds to enter the domestic financial market

< p>Event: On September 27, 2019, the Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) held its eighth meeting to study issues such as deepening the reform of the financial system, enhancing the ability of finance to serve the real economy, and deploying key work for the next step.

The meeting was chaired by Liu He, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, and Director of the Financial Committee. Responsible comrades from various member units of the Financial Committee and relevant units attended the meeting. The meeting pointed out that my country's current economic operation is generally stable, the growth momentum is accelerating, and financial risks are tending to converge. The financial system must implement the decisions and arrangements of the Party Central Committee and the State Council, adhere to the general tone of seeking progress while maintaining stability, effectively deepen the structural reform of the financial supply side, continue to implement prudent monetary policies, increase countercyclical adjustments, and maintain reasonably sufficient and adequate liquidity. The scale of social financing increased reasonably. It is necessary to further deepen the reform of policy-based financial institutions, improve the governance system and incentive mechanism, follow the operating rules of financial institutions, and give full play to the counter-cyclical regulatory role of policy-based financial institutions in economic transformation and upgrading and high-quality development. It is necessary to accelerate the construction of a long-term mechanism for capital replenishment of commercial banks, enrich the funding source channels for banks to replenish capital, and further unblock the transmission channels of liquidity from the financial system to the real economy. Focus on supporting small and medium-sized banks to replenish capital, combine capital replenishment with improving corporate governance and improving internal management, effectively guide small and medium-sized banks to focus on serving the local area, and support private and small, medium and micro enterprises. It is necessary to further expand high-level two-way opening up of the financial industry, encourage overseas financial institutions and funds to enter the domestic financial market, and enhance the vitality and competitiveness of my country's financial system.

Comment: Judging from the news: my country’s financial openness continues to expand, and the breadth and depth have been greatly improved, which is conducive to improving the vitality and competitiveness of our country’s financial system. The overall news is relatively positive.

(Investment consultant? Gu Zhixiong? Registered investment consultant certificate number: S02606611020066)

Security industry: The dividends from capital market reform will become the core driver of a new round of valuation improvement for securities companies Factors

my country's economy has strong resilience, liquidity is relatively loose and policies continue to be vigorous. A-shares are expected to rebound actively again, and brokerage stocks can be allocated as "call options" for the rise of A-shares. The dividends from capital market reform will become the core driving factor for a new round of profitability improvement for securities companies.

(Investment consultant Gu Zhixiong registered investment consultant certificate number: S02606611020066)