A-shares have experienced sudden changes, and real estate has been among the top gainers

　　On October 31, the three major A-share stock indexes opened with mixed gains and losses. After a brief retracement in early trading, it strengthened slightly.

　　The GEM index once rose by more than 2% during the session, and the gains narrowed slightly before noon. It maintained a high and volatile trend in the afternoon, and individual stocks showed a general upward trend. On the market, real estate was among the top gainers.

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Real estate surges

　　Real estate stocks across the board surged in volume in the morning, with half-day trading exceeding yesterday's full-day trading. The sector index surged more than 5% on heavy volume during the session.

　　More than 10 stocks including Beichen Industrial, Jintou Urban Development, China Fortune Land, etc. Development reached its daily limit. Vantone Development has risen by the daily limit for the 5th consecutive day, with its stock price hitting a record high; China Fortune Land Development has raised the daily limit for the 4th consecutive day, hitting a new high in more than a year; Beichen Industrial, Jintou Chengkai, etc. also closed their stocks strongly.

　　Recently, the “China New Urbanization Theory, Policy and Practice Forum 2024” was held. At the forum, Hu Zucai, counselor of the State Council and former deputy director of the National Development and Reform Commission, pointed out that our country has entered a development stage of comprehensive urban and rural integration, and the promotion of new urbanization must be organically combined with the comprehensive revitalization of rural areas. New urbanization is conducive to promoting consumption and investment to achieve a virtuous cycle and contains huge domestic demand potential.

　　According to estimates by the National Development and Reform Commission, if my country's urbanization rate increases by 1 percentage point, more than 200 billion yuan in new consumer demand can be added every year, and it can stimulate trillions of new investment demands.

　　Guotai Junan believes that the capital market's concerns about the medium- and long-term demand of the real estate industry are currently the core factor suppressing the valuation of the real estate sector. The alleviation of this factor is expected to catalyze the valuation repair process of the real estate sector.

Market confidence is still recovering

　　Dongguan Securities said that with the implementation of a package of incremental policies in the early stage, market confidence is still generally recovering.

　　However, it should also be noted that the market has shown a volatile and recurring trend recently due to factors such as fluctuations in the RMB exchange rate and external uncertainties. Expectations for follow-up policies are expected to continue to boost investor confidence. Although the market has fluctuated repeatedly in the short term, as policies continue to exert force, upward opportunities are still expected after the short-term shock rest.

　　Tianfeng Securities said that the short-term rebound may not be over yet, and the key depends on sentiment and funds. Emotions depend on policy. As policies gradually become clearer, the market will shift from emotion-driven to rational.