Mei Ri Jing Ji Xin Wen·2025-05-11 09:40Core Viewpoint - The A-share market experienced a strong rebound this week, with the Shanghai and Shenzhen indices rising approximately 2%, driven by significant policy support and improved market sentiment [1][2]. Policy Support and Market Activity - Following the May Day holiday, trading activity in the A-share market improved significantly, with an average daily trading volume of 1.35 trillion yuan, a notable increase from the previous week [2]. - The State Council emphasized "expectation management" and the importance of capital markets, with the China Securities Regulatory Commission (CSRC) pledging to support the market's recovery and promote long-term capital inflows [2]. Index Performance - The 每经品牌100指数 (Everyday Brand 100 Index) surged by 3.19% this week, closing at 1086 points, approaching the 1100-point mark [2]. - A total of 74 constituent stocks within the index saw price increases, with 75% of the stocks rising [2]. Notable Stock Performances - Key stocks such as 吉利汽车 (Geely Automobile) and 浦发银行 (Shanghai Pudong Development Bank) recorded significant weekly gains of 10.07% and 7.66%, respectively [3][4]. - Other notable performers included 宁德时代 (CATL), 招商银行 (China Merchants Bank), and 美团 (Meituan), all achieving over 5% weekly growth [4]. Market Capitalization Growth - Several stocks, including 宁德时代, 招商银行, and 贵州茅台 (Kweichow Moutai), saw their market capitalizations increase by over 50 billion yuan this week [4]. - The 每经品牌100指数 outperformed major A-share indices over the past year, with a reported increase of 17.37% from May 9, 2024, to May 7, 2025 [4]. Historical Highs and Dividend Yields - Multiple constituent stocks reached historical highs, with 建设银行 (China Construction Bank) and 浦发银行 hitting 9.33 yuan and 11.88 yuan, respectively [5]. - The dividend yield for 建设银行 is reported at 6.56%, while 浦发银行's yield stands at 2.76%, both significantly higher than the 3.2% yield of the CSI 300 index [5]. Insurance Investment Trends - After four years of decline, the number of shares held by insurance companies in A-share bank stocks has shown signs of recovery, increasing from 383 billion shares at the end of 2024 to 391 billion shares by the end of Q1 2025 [5]. Telecommunications Sector Insights - Stocks of 中国电信 (China Telecom) and 中国移动 (China Mobile) are nearing historical highs, with projected dividend yields of 73% and 72% for 2024, respectively [6]. - The demand for IDC and intelligent computing resources is expected to improve due to the rapid growth in computing power needs driven by DeepSeek [6]. Public Fund Reforms - Recent reforms in public funds emphasize performance-based fee structures and performance assessments for fund managers, potentially benefiting dividend assets [7]. - The reforms suggest that dividend assets may see increased allocation, particularly for long-term holdings, as they have historically outperformed broader indices [7]. Dividend Indices - The 中证红利指数 (CSI Dividend Index) and 红利低波100ETF (Low Volatility Dividend ETF) focus on high dividend yield and stable dividend-paying companies, reflecting the overall performance of such securities [8][11].