Guojin Securities said that, first, a significant reduction in interest rates on stock loans will be expected to repair residents' balance sheets, boost credit expectations, and promote the “bottom of the market”; second, the Politburo meeting proposed 500 billion swaps and 300 billion repurchases will inject more liquidity into the stock market and provide stronger impetus for the rise in the stock market; third, the “easy finance” signal is clear, and the pace of debt issuance may accelerate. We judge that significant “monetary broadness+fiscal leniency” all play a role on the “debt side” of residents, enterprises, and local governments, to improve the balance sheets of relevant departments by bridging debt gaps and reducing debt pressure, so as to fully prepare for the future to go light, promote consumption, investment, and activate the domestic economy — this means that “risk control” is currently the primary task in the first stage, and consolidates the corresponding valuation, that is, the “bottom of the market.” We expect the next quarter to usher in marginal improvements at the macro, meso, and micro levels. Therefore, we maintain an optimistic attitude about this round of “rebound” in the market, and suggest allocating the “technology > consumption” direction on dips. At the same time, considering that overseas risks still exist, whether the market can continue to break out of the “reversal” in the future still depends on the emergence of a “profit bottom”. If the structure of subsequent financial strength can focus more on the “asset side” such as investment, wage promotion, and employment, it is expected that the “profit bottom” of domestic enterprises will be ahead. At that time, a longer trend “reversal” market will begin.

Guojin Securities said that, first, a significant reduction in interest rates on stock loans will be expected to repair residents' balance sheets, boost credit expectations, and promote the “bottom of the market”; second, the Politburo meeting proposed 500 billion swaps and 300 billion repurchases will inject more liquidity into the stock market and provide stronger impetus for the rise in the stock market; third, the “easy finance” signal is clear, and the pace of debt issuance may accelerate. We judge that significant “monetary broadness+fiscal leniency” all play a role on the “debt side” of residents, enterprises, and local governments, to improve the balance sheets of relevant departments by bridging debt gaps and reducing debt pressure, so as to fully prepare for the future to go light, promote consumption, investment, and activate the domestic economy — this means that “risk control” is currently the primary task in the first stage, and consolidates the corresponding valuation, that is, the “bottom of the market.” We expect the next quarter to usher in marginal improvements at the macro, meso, and micro levels. Therefore, we maintain an optimistic attitude about this round of “rebound” in the market, and suggest allocating the “technology > consumption” direction on dips. At the same time, considering that overseas risks still exist, whether the market can continue to break out of the “reversal” in the future still depends on the emergence of a “profit bottom”. If the structure of subsequent financial strength can focus more on the “asset side” such as investment, wage promotion, and employment, it is expected that the “profit bottom” of domestic enterprises will be ahead. At that time, a longer trend “reversal” market will begin.