Market Overview - The three major indices showed mixed performance, with the non-metal materials sector experiencing the largest decline. As of the market opening, the Shanghai Composite Index was at 3867.20 points, up 0.08%; the Shenzhen Component Index was at 12903.91 points, down 0.03%; and the ChiNext Index was at 3041.20 points, down 0.11% [1] Policy and Economic Developments - The Ministry of Industry and Information Technology, along with five other departments, issued a plan to enhance the adaptability of consumer goods supply and demand, aiming for a significant optimization of the supply structure by 2027, with three trillion-level consumption fields and ten hundred-billion-level consumption hotspots [2] - The Ministry of Commerce reported a video meeting between Minister Wang Wentao and EU Commissioner for Trade and Economic Security, discussing semiconductor issues and emphasizing the need for constructive communication between ASML Netherlands and ASML China to restore the global semiconductor supply chain [2] - The Central Cyberspace Affairs Commission held a meeting to optimize the business environment, focusing on enhancing the detection and handling of enterprise infringement information and managing financial "self-media" and MCN accounts [2][3] Corporate Announcements - Muxi Co., Ltd. announced its initial public offering and listing on the Sci-Tech Innovation Board, planning to issue 40.1 million shares with an initial strategic placement of 8.02 million shares [3] - Longjing Environmental Protection reported a full order book for energy storage cells, with production schedules extending to June 2026 [4] - Guofeng New Materials applied for the resumption of asset restructuring review, while Beixin Building Materials plans to use up to 8 billion yuan of idle funds for entrusted wealth management [4] - *ST Dongtong received a notice of termination of listing due to false disclosures in annual reports from 2019 to 2022 [4] Market Sentiment and Economic Indicators - The U.S. stock market indices rose for the fourth consecutive trading day, with the Dow Jones up 0.67%, S&P 500 up 0.69%, and Nasdaq Composite up 0.82% [4] - The U.S. initial jobless claims fell to 216,000, the lowest since April 2025, indicating a tighter labor market [4] - The Federal Reserve's Beige Book indicated little change in U.S. economic activity recently, with a further decline in overall consumer spending, except for high-end consumers [6] Analyst Insights - Analysts from Guohai Securities predict that the A-share market may enter a phase of dual-driven growth in valuation and performance by 2026, supported by ample liquidity and a global economic upturn [8] - The chief asset allocation analyst at Guohai Securities noted that the A-share market remains in a long-term slow growth trend, while the overseas market's uncertainties have increased, suggesting greater opportunities in foreign bond markets compared to U.S. and European stock markets [8]

Core Points - The Federal Reserve has lowered the federal funds rate target range by 25 basis points to 4.00%-4.25%, marking its first rate cut since December 2024 [1][2] - The Fed anticipates an additional 50 basis points cut by the end of the year, with further cuts of 25 basis points each year for the next two years [1][3] - Market reactions included a sharp initial rise followed by a decline in major U.S. stock indices, while Chinese stocks saw significant gains [4] Market Reactions - Following the Fed's decision, the Dow Jones increased by 0.54%, while the Nasdaq and S&P 500 saw declines of 0.33% and 0.1% respectively [4] - The Nasdaq China Golden Dragon Index surged by 2.85%, with notable gains in stocks like Baidu (up over 11%) and NIO (up over 6%) [4] - U.S. Treasury yields experienced volatility, with the two-year yield dropping from 3.54% to near 3.46% before rebounding [4] Commodity Market Impact - Gold prices initially reached a record high of $3704 per ounce before closing at $3658.89, reflecting a year-to-date increase of over 40% [5] - Silver prices also saw fluctuations, with a peak decline of over 3% before closing down 2.14% at $41.638 per ounce [5] Implications for A-shares and H-shares - Historical analysis indicates that A-shares and H-shares have often seen more declines than gains following Fed rate cuts, with the oil and petrochemical sector being an exception [6] - Analysts suggest that this rate cut cycle may differ from previous ones, potentially benefiting growth sectors in A-shares and H-shares [6][7] - Specific sectors such as AI computing, semiconductor, innovative pharmaceuticals, and certain metals are expected to perform well in the current environment [6][7]

Group 1 - The general consensus among institutions is that the potential restart of interest rate cuts by the Federal Reserve will lead to sustained global liquidity, benefiting A-shares and H-shares as domestic earnings are expected to turn upward [1][5] - Goldman Sachs' chief China equity strategist Liu Jinjun and his team maintain an overweight rating on A-shares and H-shares, predicting potential upside of 8% and 3% for the two markets over the next 12 months, respectively [5] - The Southern Fund's manager for the Hong Kong pharmaceutical sector highlights significant progress in China's innovative drug industry over the past three years, enhancing its competitiveness globally [5] Group 2 - On September 18, the A-share market experienced a high-to-low trend, with the Shanghai Composite Index approaching the 3900-point mark before declining in the afternoon [2] - The Asia-Pacific market indices closed mixed on September 18, with the South Korean Composite Index rising by 1.40% to 3461.30 points [2] - Domestic commodity futures saw most main contracts decline, particularly in the precious metals sector, while government bond futures also fell [2] Group 3 - On September 18, the onshore RMB closed at 7.1079 against the USD, down 23 basis points from the previous trading day [4] - The China Convertible Bond Index fell by 0.68% to 476.2 points on September 18 [3] - The performance of ETFs was mixed on September 18, with the industrial and non-ferrous ETF dropping by 4.14% [3]