Hexun Investment Advisor Lu Minyong:

Today’s market opened during a weekend with mostly bearish news, but the entire Asia-Pacific market did not experience a significant gap down. Since the opening, both the Japanese and Korean stock markets have started to weaken. Crude oil has stabilized and rebounded again. You’ll notice that the movement of crude oil prices has a very strong impact on the capital markets. When crude oil prices rise, it tends to be bullish for stocks, especially for A-shares. Currently, crude oil is around $98, and after a strong opening today, it surged above $100. Overall, the trend remains relatively strong.

Regarding the future trend of A-shares, the biggest factor disrupting our bullish outlook is the Middle East situation. At present, it seems unlikely to be resolved quickly. Additionally, an important meeting scheduled for the end of the month might also be postponed. These are the latest news that are not very favorable for the market bulls.

Looking at the overall market trend, both the Shanghai Composite Index and the average stock price are currently oscillating at high levels within a range, with a tendency to move toward the lower end of the range. I personally believe that if the risk events do not end soon, the market and the average stock price could both experience a downward correction within this range.

In practical terms, I still recommend everyone maintain a relatively low position size and avoid buying as much as possible, focusing mainly on resting.

(Chief Editor: Zhang Yan)

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