On September 29, A-shares overall showed signs of stabilizing after declines, with the three major stock indices closing higher collectively. Market turnover fell to a new low in more than a year. Sectors such as real estate, media, and nonferrous metals led the gains, while the process of market style rebalancing continued. Industry insiders believe that reduced market trading activity before a long holiday is a common phenomenon. Looking ahead, affected by the return of funds after the holiday, A-shares may perform more positively, and their upward logic has not been broken, with technology still the medium-term main line. In terms of specific allocation, it is recommended to continue buying on dips into technology growth leaders with strong certainty of earnings delivery, while also paying attention to cyclical and consumer sectors where policies are taking effect and fundamentals are marginally recovering, and using high-dividend assets as the base position for allocation. As for thematic investment, thematic opportunities with "narrative tension," such as agriculture and commercial aerospace, are worth seizing, while thematic targets with earnings below expectations should be cautiously avoided. After several trading days of rapid decline, on September 29, the three major A-share stock indices closed higher collectively. As of the close that day, Wind data showed that the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index rose 0.18%, 0.34%, and 0.09%, respectively. Several other important market indices, including Wind All A, the STAR Market Composite Index, the Beijing Stock Exchange 50, and the CSI 300, also closed higher. In terms of trading activity, on September 29, the full-day turnover of the A-share market further shrank to 1.42 trillion yuan, a decrease of nearly 300 billion yuan from the previous trading day, setting a new low since July 8, 2025. In terms of sector performance, on September 29, the real estate sector led the 31 Shenwan Level-1 industries with a gain of 4.06%. Among constituent stocks, Tefa Service (300917) surged more than 13%, while multiple stocks hit the daily limit, including Xinda Real Estate (600657), Huafa shares (600325), Binjiang Group (002244), Shenzhen Property A (000011), China Vanke A, and Hualian Holdings (000036). The recent performance of the real estate sector has clearly been boosted by the intensive rollout of favorable policies. On September 29, the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration jointly issued a notice clarifying that starting October 1, 2026, an interest subsidy policy for residents' home purchase loans will be implemented. The policy implementation period is tentatively set at one year. The loan scale eligible for interest subsidies can reach up to 1 million yuan. The fiscal department will provide an annualized interest subsidy of 1 percentage point, with a maximum subsidy period of five years. The State Council executive meeting held on September 28 proposed "studying and introducing policy measures to stabilize the real estate market and promote employment and income growth." Recently, multiple cities including Beijing and Shanghai have introduced related policies to promote existing-home sales, and positive signals in many local property markets have appeared frequently. In addition to the real estate sector, media, nonferrous metals, building materials, and other sectors all rose more than 1% on September 29, showing relatively active performance, while computer, electronics, building decoration, and other sectors were among the top gainers. Among market concept sectors, concept sectors related to real estate, semiconductors, and the power equipment industry chain, such as selected real estate, circuit boards, virtual humans, lithium battery cathodes, and urban village renovation, were among the top gainers. Overall, the process of market style rebalancing is still continuing, and the previous divergence in which a small number of technology sectors stood out alone has clearly narrowed.
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