The Central Bank of China lowered the reserve requirement, which strengthened the market's expectation that interest rates will further decline, and also helped to repair the extreme valuation of equity assets. Investors can continue to pay attention to interest rate sensitive industries, such as small and medium-sized science and innovation (self-control, new energy, software), finance, and the direction of active financial development, such as construction and building materials.
But at the same time, it should be noted that if the interest rate cut is less than expected, it may suppress the market optimism and change the market. Therefore, it is still necessary to attack and defend both, and retain the allocation of risk averse and stable assets. From the perspective of large asset allocation, the downward interest rate and weak economic environment are more conducive to the medium and long-term performance of interest rate bonds and gold. Therefore, we continue to recommend the continuous allocation of safe haven assets such as precious metals such as gold and fixed income products such as interest rate bonds; Among A-share assets, targets with stable and good performance, low valuation or stable dividend return can also intervene on bargain hunting as bottom position allocation.
(Securities Times)
