The Fed's rate cut boosts the strength of RMB assets, industry insiders say that the future trend of A-shares still depends on domestic fundamentals

The Federal Reserve's announcement of a rate cut after four years quickly became the focus of global markets. With the expected further release of liquidity due to the rate cut, market attention and positioning towards Chinese assets have increased. Based on the analysis of historical market trends and relevant data, many industry insiders believe that the Fed's rate cut is generally positive for the domestic stock market, bond market, and RMB exchange rate. However, for A-shares, the future trend will still be mainly influenced by the fundamentals of the Chinese economy. The key to the continued upward trend in Hong Kong stocks also lies in the extent of domestic policy easing and the recovery of domestic economic momentum. In terms of specific allocation, it is recommended to focus on boosting domestic demand and promoting self-reliance. In addition, innovative pharmaceuticals, Hong Kong-listed technology stocks, and high-dividend stocks are also worth considering. (China Securities Journal)