A-share turnover hit a more than one-year low on September 29, with the three major stock indices closing higher collectively, as real estate, media, and non-ferrous metals sectors led gains. Market participants view the pre-holiday decline in trading activity as a common phenomenon, and expect A-shares to perform more positively after the holiday due to capital inflows, with technology remaining the mid-term main theme.

China's Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration jointly issued a notice to implement a housing loan interest subsidy policy nationwide, effective from October 1, 2026, for a tentative period of one year, aimed at reducing the interest burden on commercial personal housing loans for families purchasing their first homes.

The People's Bank of China announced adjustments to several monetary policy tools, including a 0.25 percentage point cut to the Pledged Supplementary Lending (PSL) rate, incorporating the construction of the "Six Networks" into PSL-supported areas, increasing the re-lending quota for technological innovation and technical upgrading by 200 billion yuan, and raising the re-lending quota for agriculture and small businesses by 500 billion yuan.

The State Council Information Office held a press conference on advancing the construction of a technology powerhouse during the "15th Five-Year Plan" period. Over the past five years, China's technological innovation has reached new heights, and the Ministry of Science and Technology will focus on six areas: strengthening foundations, tackling key challenges, shaping industries, benefiting livelihoods, reinforcing systems, and promoting cooperation.

The People's Bank of China announced further adjustments to several monetary policy tools, optimizing PSL, re-lending for technological innovation and technical upgrading, and re-lending for agriculture and small businesses to support stable growth. Experts say this policy "package" forms a clear division of labor and will help promote new infrastructure construction, industrial transformation and upgrading, and support micro-enterprises.

The "Financial Product Online Marketing Management Measures" officially took effect on September 30, banning phrases like "instant arrival" and "zero yuan purchase" in loan marketing. Payment platforms have completed the separation of credit and payment tools, accelerating a restructuring of financial product marketing rules involving financial institutions, internet platforms, and hundreds of millions of consumers.

Nearly 60% of private funds surveyed by Pai Pai Wang indicated they would hold heavy or full positions (above 80%) before the National Day holiday, while less than 8% preferred light or empty positions (below 40%), suggesting short-term volatility does not change medium-to-long-term logic.

The National Climate Center of the China Meteorological Administration expects the current El Niño event to peak around November, with a sea surface temperature index peak of 3.2°C to 3.5°C, significantly higher than the historical maximum of 2.8°C. The impact on China's climate in summer 2027 will be more pronounced than in 2026, potentially leading to a performance recovery window for hydropower companies in the third quarter.

Three departments announced that eligible residential housing loans can enjoy interest subsidies starting October 1, with conditions including a housing area not exceeding 120 square meters and a housing price not exceeding 1.5 million yuan, potentially reducing interest payments by nearly 50,000 yuan. The policy is tentatively set for one year.

An important meeting on the industrial mother machine industry chain was held, with multiple listed companies actively promoting AI technology integration. China's industrial mother machine industry scale continues to lead globally, and AI-driven CNC machine tools are entering a new round of iterative upgrades, with policy support accelerating domestic substitution.

After years of capacity clearance, the lithium battery anode industry is shifting from structural oversupply to a tight supply-demand balance, with price, capacity, and capital signals emerging. Companies like Shanshan Co. have raised product prices, leading firms have密集 launched expansion plans, and Xuetian Salt Industry has cross-border acquired an anode material company. However, anode companies generally face pressure from rising raw material prices, and insufficient graphitization supply is a core bottleneck for capacity release.

Consumer companies are increasingly entering the investment arena as limited partners (LPs) or setting up funds. Recently, A-share listed company Proya announced that its wholly-owned subsidiary Proya (Hainan) Investment Co. will invest 100 million yuan of its own funds to subscribe for a limited partnership share in Ningbo Zhixing Yueheng Venture Capital Partnership, managed by Zhengxin Valley Capital.

A look at the "calendar effect" of A-shares over ten National Day holidays shows funds preferring consumption and defensive sectors before the holiday. Shanghai Composite Index rose on the first trading day after the holiday in 7 out of 10 years from 2016 to 2025, with the market typically showing "cautious volume contraction before the holiday and recovery after."

The People's Bank of China launched a "combination punch" of monetary policy tools, adjusting and improving several tools to implement a moderately loose monetary policy, creating a suitable monetary and financial environment for stable economic growth, high-quality development, and stable financial market operations, supporting a good start for the "15th Five-Year Plan."

Multiple departments are focusing on expanding and upgrading the service industry. In the first half of this year, the service industry's contribution to economic growth reached 66.1%, up 5.9 percentage points year-on-year, and the business activity expectation index has been above 55% for five consecutive months since April.

Demand recovery is driving the dye industry chain's prosperity upward. On September 29, the A-share disperse dye concept sector saw a strong rally, with companies like Shanshui Technology and Yabang shares hitting the limit up, and others like Jihua Group, Haixiang Pharmaceutical, Jinji shares, and Anoky rising with increased volume. Since mid-to-late June, dye products and upstream core intermediates have seen a sustained and significant price increase, coupled with the traditional "Golden September and Silver October" peak stocking season in the downstream textile industry, pushing the dye industry chain's prosperity higher.