CSI 300 down 0.21%
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This week, China’s A-share market was in a rebound-attempt phase. The market tried to repair, but reversal signals still need further confirmation. Index performance diverged: the SSE Index(000001) rose 1.2% for the week and moved back above its 5-, 10-, 20-, and 50-day moving averages, indicating decent short-term repair momentum, though it remains 1.49% below the 200-day moving average. The CSI 300(000300) fell 0.21% for the week and is still below its 20-, 50-, and 200-day moving averages, suggesting insufficient follow-through from heavyweight sectors. Growth remained weak overall: the Shenzhen Index(399001) fell 1.0%, and ChiNext(399006) dropped 3.42%. On turnover, major A-share indexes all closed the final trading day below their 50-day average volume; CSI 300 was 30.12% lower, and weekly turnover declined further versus the prior week—indicating this rebound is still largely a game of existing liquidity rather than fresh inflows.
Overseas markets remained broadly resilient. The Nasdaq Composite(0NDQC) rose 1.38% for the week, just 2.39% below its one-year high and 9.15% above its 200-day moving average. The S & P 500 Index(0S&P5) gained 0.74%, only 1.10% from its one-year high, and remained in a strong consolidation pattern. Hong Kong equities pulled back: the Hang Seng Index(HSI) fell 1.63% for the week, but still stood 3.10% above its 50-day moving average, implying near-term high-level consolidation. Global risk assets have not shown synchronized weakening, but recurring external shocks—rates, tariffs, and geopolitics—continue to create swings in risk appetite.
The key divergence in domestic and international policy remains: the U.S. is still balancing “inflation control” and “risk prevention,” while China is emphasizing “expanding domestic demand, stabilizing growth, and facilitating structural transformation.” In the U.S., July core PCE inflation was 3.3% YoY, in line with expectations and the prior reading, indicating sticky core inflation. The Federal Reserve is therefore likely to stay cautious on rate cuts or a clear pivot to easing. Meanwhile, initial jobless claims for the week ending Aug 22 dropped to 203,000, below both expectations and the prior reading, signaling continued labor-market resilience and reducing the urgency for near-term policy easing due to growth slowdown. EIA crude inventories rose by only 95,000 barrels, well below expectations and the prior figure, suggesting a tighter supply-demand balance than before. Combined with recurring Middle East tensions and elevated global supply risks, energy prices may still disturb U.S. inflation.
Against this backdrop, U.S. policy remains relatively “tight.” On one side, hawkish voices within the Fed continue to stress that inflation is unlikely to fall quickly in the near term. On the other, the U.S. Treasury has stepped up stabilization efforts to ease long-end rate pressure, but markets have not fully bought in—reflecting deeper constraints from the interaction of high rates, high debt, and macro fundamental risks. In addition, the U.S. is considering an additional 7.5% tariff on China and restrictions on foreign power-grid equipment, while Canada has launched reciprocal retaliation—highlighting continued escalation in trade protectionism. Economic policy is no longer just about aggregate demand management; it is increasingly tied to industrial security and geopolitical competition.
Domestically, China’s policy direction is becoming clearer: stabilize the growth base through counter-cyclical adjustment, and strengthen endogenous momentum via consumption expansion, property stabilization, and industrial support. The PBOC explicitly stated it will conduct overnight reverse repos from Aug 27 to Sep 1, with daily operations capped at RMB 600 billion, indicating flexible liquidity injections that focus more on stabilizing funding conditions and expectations, rather than rushing into broad-based easing. Ongoing market debate over rate cuts and RRR cuts also reflects greater emphasis on targeted support and transmission efficiency.
Policies to expand domestic demand are accelerating in implementation. Recently, housing provident fund policies have been further optimized across multiple regions, including higher first-home loan quotas and innovative schemes such as “15% down payment + interest subsidy,” helping reduce housing and living costs and support recovery in housing-related consumption chains. At the same time, policy support for consumption continues to strengthen, with expanding scenarios in sports-event economics, culture-tourism spending, and new service consumption.
Industrial policy is showing a “dual-track” approach to both new and traditional sectors. On one hand, moderately front-loaded construction of next-generation communications networks has been encouraged, and integrated-circuit industry profits have surged—suggesting support for advanced manufacturing and tech sectors is taking effect. On the other hand, industrial enterprise profits rose 17.6% in the first seven months, indicating that pro-industry and pro-enterprise policies are improving micro-level business expectations.
Next week, 943 companies are set to release earnings, meaning the market is now in earnings season. In this phase, individual stock volatility typically rises significantly. Earnings delivery, guidance revisions, and portfolio rebalancing can materially affect short-term performance. Stock selection therefore requires closer attention to alignment among earnings quality, relative strength, and price-volume behavior.
By sector, capital style has rebalanced versus earlier weeks. Leadership has shifted from pure tech-growth to areas such as Agricultural Operations, Computer Sftwr-Financial, and Finance-Investment Mgmt, which combine policy tailwinds with structural demand support. This suggests that during the rebound attempt, market leadership is broadening beyond a single tech theme. This week’s top-performing sectors were Agricultural Operations(G1000IG.CN), up 7.11%, Computer Sftwr-Financial(G2821IG.CN), up 6.52%, and Finance-Investment Mgmt(G8072IG.CN), up 5.32%. Strength in Agricultural Operations reflects rising focus on food security, the agriculture value chain, and policy support, while also carrying defensive attributes. Financial software ranking near the top indicates continued optimism around financial digitalization, trading systems, and tech-enabled financial services. Gains in investment management suggest renewed interest in wealth and asset management as capital-market activity improves and policy emphasizes resilience and confidence.
At the single-stock level, the Top 33 universe posted an average weekly return of 0.16%, with 11 gainers and 22 decliners. This indicates partial stabilization among strong stocks, but still notable internal divergence—meaning broad-based profit opportunities have not yet fully formed. The week’s top performer was Yangtze Optical Fibre And Cable Joint Stock(601869), up 16.16%. The company belongs to Telecom-Fiber Optics(G3552IG.CN) and mainly produces fiber preforms, optical fiber, and optical cable products, benefiting from expectations for next-generation network buildout and industrial upgrading. On key metrics, it recorded an O’Neil Score of 75, an RS Rating of 99, and an EPS Rating of 96, combining strong earnings and strong price action. Its industry rank is 32, within MarketSmith’s preferred top 1–40 strong-industry range, indicating both high-quality company fundamentals and favorable industry positioning. Its Acc/Dis Rating is A, signaling a neutral-to-positive capital-flow profile. If upcoming earnings and order expectations continue to improve, the stock’s upside elasticity remains worth tracking.
In the current market environment, although indexes are attempting a rebound, the broader pattern of weak volume, soft heavyweight participation, and pressured growth has not fundamentally changed. Tactically, priority should be given to stocks with high industry ranks, strong relative strength, and high EPS ratings—especially leaders in resources, shipping, energy, and selected communications infrastructure. For stocks breaking below medium-term moving averages, missing earnings expectations, or stalling on high volume, discipline and caution remain essential.
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published on August 28, 2026