Huatai Securities: Short-term grasp of funds supply and demand in A-share market, medium-term tracking of credit cycle

Jinshi data news on October 8th, Huatai Securities stated that it is expected that there will still be heat in the A-share market in the short term after the holiday, and more importantly, the trading strategy after the opening. The repair market after the historical bottom in the past often presents the three-stage driving force of policy-driven, fund-driven, and credit-driven ‘handover’, we believe that in the short term, the supply and demand relationship of funds is an important variable for the market interpretation; from the current trends of industrial capital, individual investors, foreign capital, and other fund entities, there is no obvious change in the driving force that promotes the market to rise. Subsequently, the focus will be on the following: 1) whether the supply and demand relationship of funds has changed, whether funds with different attributes have differentiated, 2) new variables such as finance, elections, and third quarter reports after mid-October, 3) whether credit recovery can take over.