Major indices in Shanghai and Shenzhen saw a fluctuating upward trend on March 6, with trading volume expanding to 2.2 trillion yuan and more than 4,200 stocks advancing. The government's GDP growth target has been adjusted from "around 5%" over the past three years to a range of 4.5% to 5%. Concurrently, the deficit ratio remains near 4%, while the deficit scale increases to 5.89 trillion yuan. Overall, the fiscal-monetary policy mix has not tightened significantly but has shifted from "extraordinary stimulus" to "maintaining stability at elevated levels with structural optimization." This suggests policymakers may be deliberately moderating growth to create room for structural adjustments, risk reduction, and fostering new economic drivers. The government work report establishes a new medium-to-long-term growth and asset pricing framework through a range-based GDP target, prioritization of new productive forces, and enhanced quasi-fiscal tools. It elevates "accelerating the cultivation of new growth drivers and developing new productive forces according to local conditions" along with "advancing high-level technological self-reliance" to annual priorities. Combined with targeted support for frontier sectors such as "AI+," future energy, and low-altitude economy, these measures indicate that structural opportunities in Chinese assets may increasingly concentrate in technology, green energy, and advanced manufacturing.
On March 5, the People's Bank of China announced it would conduct 800 billion yuan in three-month (91-day) reverse repurchase operations via quantity-based, interest-rate bidding with multiple pricing on March 6 to maintain ample banking system liquidity. Earlier notices indicated 1 trillion yuan in three-month reverse repos would mature in March. Following this operation, the net renewal of three-month reverse repos for the month shows a 200 billion yuan reduction, marking the first contraction in such operations since June 2025. This reduction has drawn market attention to liquidity trends, though it likely reflects shifts in funding demand structure rather than a policy shift. With government bond issuance remaining high in March and additional funding needs for 800 billion yuan in new policy-oriented financial tools, underlying pressures on liquidity persist. The central bank's medium-term liquidity injections aim to keep funding conditions stable and ample. Future attention should focus on the renewal of maturing Medium-term Lending Facility operations and potential increases in six-month reverse repos.
On March 4, Automatic Data Processing Inc released the U.S. private sector employment report for February. Data showed an increase of 63,000 private sector jobs, the highest since August 2025, surpassing market expectations of 50,000. However, January's figure was revised down from 22,000 to 11,000. By sector, education and health services added 58,000 jobs, construction gained 19,000, while professional/business services lost 30,000 and manufacturing declined by 5,000. The stronger-than-expected ADP data signals stabilization in the U.S. labor market, but structural concerns remain: job growth is heavily concentrated in education/healthcare and construction, while professional services and manufacturing continue to contract, indicating an uneven recovery. For the Federal Reserve, labor market stability supports maintaining current interest rates in the short term, though inflation pressures—particularly from oil prices—remain a key concern.
On March 6, China's three major stock indices closed higher. The Shanghai Composite Index rose 0.38% to 4,124.19 points, the Shenzhen Component Index gained 0.59% to 14,172.30 points, and the ChiNext Index advanced 0.38% to 3,229.30 points. The STAR 100 Index increased 0.83% to 1,580.34 points. Among sectors, agriculture, basic chemicals, and pharmaceuticals led gains, rising 3.71%, 2.84%, and 2.41%, respectively. Oil and petrochemicals, nonferrous metals, and communications declined the most, falling 2.02%, 1.77%, and 1.07%. A total of 4,114 stocks rose, while 1,064 fell.
Market turnover reached 2.22 trillion yuan, down from the previous session. The margin trading and securities lending balance stood at 2.65 trillion yuan, up from the prior day.
MACD golden cross signals have formed, indicating positive momentum for several stocks.
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