September 22 A-share Market “Repairs” Are Not a Simple Rebound: Policy Easing and Regulatory Relaxation Interlock
On September 22, the A-share market, on the surface, showed a rebound driven by sectors such as pharmaceuticals and real estate, but the underlying logic is worth breaking down. This day was not a mere technical rebound; rather, it was the combined result of policy expectations, regulatory easing, and an external market “mapping” effect. At a meeting convened by the People’s Bank of China with foreign financial institutions, the message released was “moderate easing” rather than “large-scale escalation.” Notably, it also unusually retained the original wording from foreign investors calling for “strengthening communication.” Behind this lies an urgent need by regulators to maintain confidence in funding amid the backdrop of a widening interest-rate spread between China and other countries. Meanwhile, the Hong Kong Exchanges and Clearing (HKEX) published consultation documents seeking to activate market supply by raising the thresholds for merger and acquisition approvals and shortening the restriction period on spin-off listings. This institutional “loosening” is changing the ecosystem linkage between the A-share and Hong Kong stock markets. On the U.S. stock front, AMD’s market value surpassing $1 trillion, along with the frenzy over the “Greenland concept,” illustrates a new global-camp pricing logic for computing-power hardware and geopolitical resources. For domestic investors, these macro and meso-level changes are redefining valuation anchors for A-share sectors—especially the two highly controversial areas of innovative drugs and real estate, whose underlying game logic is far more complex than stock chart (K-line) fluctuations.
From the perspective of specific policies and facts, in its communications after the meeting, the PBOC clearly stated “implement the monetary policy of moderate easing well.” This wording creates a subtle difference from the more aggressive phrasing of “increase efforts,” signaling that there may be limited room for further monetary easing in the near term. The policy focus is more on liquidity management and expectation guidance. The end of the communication also specifically mentioned that foreign institutions want to “continue optimizing relevant policies and strengthen communication with the market,” which is relatively rare in the PBOC’s communications—an indirect confirmation of foreign investors’ recent concerns about policy transparency and predictability. As a supporting measure, on September 23 Hong Kong will issue RMB 60 billion in PBOC bills, emphasizing “making the international use of the renminbi more convenient.” This both demonstrates sincerity to foreign institutions and helps stabilize offshore RMB liquidity through financial-instrument innovation.
Regarding market-institution reform, HKEX’s consultation documents propose two core changes: first, increasing the proportion of transactions requiring shareholder-approval from 25% to 50%; second, shortening the waiting period after a parent company’s listing for applying to list a spin-off from 3 years to 1 year. The aim is to lower the costs and time thresholds for listed-company M&A and spin-offs, thereby supplying the market with more high-quality targets. The trade-off is that investor protection mechanisms tilt from “pre-approval” toward “post-disclosure,” which is directly positive for securities firms’ investment banking business, while also imposing higher requirements on the exchange’s regulatory efficiency.
In overseas markets and commodities, the three major U.S. stock indexes rose collectively, with the Nasdaq leading the gains. The semiconductor sector performed strongly; AMD’s share price hit a historic high and its market value broke above $1 trillion. The main driving force comes from expectations of massive demand for CPUs from on-device AI. It is also worth noting that the U.S. market saw an extremely speculative “Greenland concept” stock theme. It started after the U.S. president and Denmark signed a contract to cooperate on developing Greenland; market funds rapidly flowed into related resource companies, causing the stock prices to double within an extremely short period. In commodities, copper prices were strong; crude oil pulled back by nearly two percentage points; agricultural products overall strengthened; and the decline in U.S. Treasury yields provided support for risk assets. The A50 futures also moved optimistically, reflecting that foreign investors’ stance toward China’s core assets has not weakened completely due to the interest-rate spread problem.
By contrast, individual stocks in China showed divergence. Pharmaceutical stocks—especially the innovative drug sector—became the focus of fund “crowding.” The real estate sector, however, displayed a typical “event-driven rebound” pattern: after a long period of drifting lower unnoticed, it surged briefly when prompted by specific news (such as screenshots of chat messages and other short posts), and then quickly returned to a flat tone. This kind of market action lacks continuity; it is more about emotional venting than a fundamental turnaround. For ordinary investors, it’s important to be wary of the “pulse-like” spike trap in such sectors and avoid taking positions at emotional peaks. Overall, the market performance on September 22 is not a signal of an all-around bull market, but rather a coexistence of structural opportunities and valuation risks. In a backdrop of mild policy support, regulatory easing, and strong overseas markets, the core A-share question is: which sectors can truly deliver earnings growth, and which sectors rely mainly on sentiment and concepts. The valuation “insulation” (overvaluation) crowding in innovative drugs and the emotionally driven rebound in real estate are concentrated expressions of this contradiction. When participating, investors should focus more on whether fundamentals are actually being realized, rather than blindly chasing after momentum or panic-selling. Especially in the current environment where global capital is re-pricing resources and technology assets, staying calm and rational is key to avoiding getting thrown off by short-term hot spots.
Follow me—my next post will be a quick read of the trading screen so you won’t miss anything.
On September 22, the A-share market, on the surface, showed a rebound driven by sectors such as pharmaceuticals and real estate, but the underlying logic is worth breaking down. This day was not a mere technical rebound; rather, it was the combined result of policy expectations, regulatory easing, and an external market “mapping” effect. At a meeting convened by the People’s Bank of China with foreign financial institutions, the message released was “moderate easing” rather than “large-scale escalation.” Notably, it also unusually retained the original wording from foreign investors calling for “strengthening communication.” Behind this lies an urgent need by regulators to maintain confidence in funding amid the backdrop of a widening interest-rate spread between China and other countries. Meanwhile, the Hong Kong Exchanges and Clearing (HKEX) published consultation documents seeking to activate market supply by raising the thresholds for merger and acquisition approvals and shortening the restriction period on spin-off listings. This institutional “loosening” is changing the ecosystem linkage between the A-share and Hong Kong stock markets. On the U.S. stock front, AMD’s market value surpassing $1 trillion, along with the frenzy over the “Greenland concept,” illustrates a new global-camp pricing logic for computing-power hardware and geopolitical resources. For domestic investors, these macro and meso-level changes are redefining valuation anchors for A-share sectors—especially the two highly controversial areas of innovative drugs and real estate, whose underlying game logic is far more complex than stock chart (K-line) fluctuations.
From the perspective of specific policies and facts, in its communications after the meeting, the PBOC clearly stated “implement the monetary policy of moderate easing well.” This wording creates a subtle difference from the more aggressive phrasing of “increase efforts,” signaling that there may be limited room for further monetary easing in the near term. The policy focus is more on liquidity management and expectation guidance. The end of the communication also specifically mentioned that foreign institutions want to “continue optimizing relevant policies and strengthen communication with the market,” which is relatively rare in the PBOC’s communications—an indirect confirmation of foreign investors’ recent concerns about policy transparency and predictability. As a supporting measure, on September 23 Hong Kong will issue RMB 60 billion in PBOC bills, emphasizing “making the international use of the renminbi more convenient.” This both demonstrates sincerity to foreign institutions and helps stabilize offshore RMB liquidity through financial-instrument innovation.
Regarding market-institution reform, HKEX’s consultation documents propose two core changes: first, increasing the proportion of transactions requiring shareholder-approval from 25% to 50%; second, shortening the waiting period after a parent company’s listing for applying to list a spin-off from 3 years to 1 year. The aim is to lower the costs and time thresholds for listed-company M&A and spin-offs, thereby supplying the market with more high-quality targets. The trade-off is that investor protection mechanisms tilt from “pre-approval” toward “post-disclosure,” which is directly positive for securities firms’ investment banking business, while also imposing higher requirements on the exchange’s regulatory efficiency.
In overseas markets and commodities, the three major U.S. stock indexes rose collectively, with the Nasdaq leading the gains. The semiconductor sector performed strongly; AMD’s share price hit a historic high and its market value broke above $1 trillion. The main driving force comes from expectations of massive demand for CPUs from on-device AI. It is also worth noting that the U.S. market saw an extremely speculative “Greenland concept” stock theme. It started after the U.S. president and Denmark signed a contract to cooperate on developing Greenland; market funds rapidly flowed into related resource companies, causing the stock prices to double within an extremely short period. In commodities, copper prices were strong; crude oil pulled back by nearly two percentage points; agricultural products overall strengthened; and the decline in U.S. Treasury yields provided support for risk assets. The A50 futures also moved optimistically, reflecting that foreign investors’ stance toward China’s core assets has not weakened completely due to the interest-rate spread problem.
By contrast, individual stocks in China showed divergence. Pharmaceutical stocks—especially the innovative drug sector—became the focus of fund “crowding.” The real estate sector, however, displayed a typical “event-driven rebound” pattern: after a long period of drifting lower unnoticed, it surged briefly when prompted by specific news (such as screenshots of chat messages and other short posts), and then quickly returned to a flat tone. This kind of market action lacks continuity; it is more about emotional venting than a fundamental turnaround. For ordinary investors, it’s important to be wary of the “pulse-like” spike trap in such sectors and avoid taking positions at emotional peaks. Overall, the market performance on September 22 is not a signal of an all-around bull market, but rather a coexistence of structural opportunities and valuation risks. In a backdrop of mild policy support, regulatory easing, and strong overseas markets, the core A-share question is: which sectors can truly deliver earnings growth, and which sectors rely mainly on sentiment and concepts. The valuation “insulation” (overvaluation) crowding in innovative drugs and the emotionally driven rebound in real estate are concentrated expressions of this contradiction. When participating, investors should focus more on whether fundamentals are actually being realized, rather than blindly chasing after momentum or panic-selling. Especially in the current environment where global capital is re-pricing resources and technology assets, staying calm and rational is key to avoiding getting thrown off by short-term hot spots.
Follow me—my next post will be a quick read of the trading screen so you won’t miss anything.
