Yesterday,the stock market went wild with an injection of over 5000 billion plus 3000 billion,even though the central bank continued to send warmth today by lowering the MLF rate from 2.3% to 2%.However,the A-shares took a dive during the trading session.Was there any bearish news?Or did the bull market one-day experience card expire?

The A-shares opened at 2900 points today,and the trading volume broke through the trillion mark for the first time in 4 months.However,the trend was not as perfect as yesterday.The morning was relatively strong,but the afternoon saw another diving stunt.

This is actually understandable.Over the past two years,A-shares have had three major rebound trends,but in the end,they were all roller coasters.The 3000-point defense was repeated over and over again.Sigh,we've been trapped numbly,and now we encounter good news with skepticism,not daring to rush in all at once.

Moreover,although the central bank said that money is available,if 5000 billion is not enough,another 5000 billion will be given.However,institutions need time to exchange money with the central bank to build positions.These two days have seen more short-term funds in the market adding positions,but short-term funds are characterized by impatience.They sell first after the rise,and long-term institutional funds are still waiting to enter the market.

Due to being deceived by A-shares too many times,everyone is very skeptical about whether this is a reversal now.I think the central bank has done its best,but it cannot reverse the downward trend of A-shares alone.In fact,over the past two years,interest rates and reserve requirements have been reduced many times,but A-shares are still in a state of being unafraid of boiling water,because the central bank can only work on monetary supply.

Indeed,the central bank has given the market a lot of money,and money is getting cheaper and cheaper.But the problem is that no one borrows it,nor consumes or invests.They all go to buy bank financial products,turning the bond market into a big bull market.This is called the monetary policy transmission path being blocked in academic terms.

Now,someone needs to stand up and cooperate with the central bank's money release.Government departments,corporate departments,and resident departments,one side must exert force.For example,local finance issues bonds to take over the unsold houses in the hands of the people,and the people can use the money from selling houses for consumption,and money can flow.Or,by transferring payments to increase residents' income,people will naturally consume when their wallets are full.Therefore,a loose monetary policy must be accompanied by a loose fiscal policy.If A-shares want to reverse,they must see the appearance of strong fiscal policies.

In fact,there are rumors of fiscal policy news today,but they have not been confirmed,and the market does not believe it.I won't list it for everyone here.

Let's look at today's heavy news:

Federal Reserve Governor Bowman said that she will continue to be cautious about further interest rate cuts.She believes that inflation risks still exist,and the labor market has not shown significant signs of weakness.The Federal Reserve should reduce interest rates at a "moderate" pace.However,the current market is pricing in at least a 75 basis point (BP) interest rate cut by the Federal Reserve within the year,but I believe the U.S.economy still has resilience,and the next rate cut is most likely to be 25 BP.

The central bank today conducted a 300 billion yuan one-year Medium-Term Lending Facility (MLF) operation,with a winning bid rate of 2.0%,previously at 2.3%.After the operation,the balance of the MLF stands at 6,878 billion yuan.

Yesterday,the central bank lowered short-term interest rates,and today it lowered long-term interest rates.The Loan Prime Rate (LPR) in October is also expected to follow suit.If the LPR is reduced,the mortgage interest rate will likely be reduced as well.

Morgan Stanley: Strong demand from major customers is driving Nvidia's Blackwell GPU into mass production,while the H200 chip is seeing increased demand from small cloud providers and sovereign AI projects.In the fourth quarter,450,000 Blackwell chips will be delivered,generating over 10 billion U.S.dollars in revenue,and the GB200 server racks will be shipped by the end of the fourth quarter.

According to a report by Caixin,the revised version of the U.S.Senate's "Biosafety Bill" S.3558 has been submitted to the Senate and included in the legislative agenda,with WuXi Biologics not being included.

With the approval of the State Council,the Ministry of Civil Affairs and the Ministry of Finance have jointly deployed a one-time living allowance for people in dire need,such as those in extreme poverty and orphans,on the occasion of the 75th anniversary of the founding of the People's Republic of China.The Ministry of Civil Affairs and the Ministry of Finance have called on local civil affairs and finance departments to strengthen collaboration,organize and implement seriously; strictly review the scope of distribution,standardize the distribution process,ensure that funds are used for their intended purpose,and ensure that the one-time living allowance is distributed to the people in need before October 1st,promptly conveying the care and concern of the Party and the government for the people in need.

Finally,a brief look at the market performance: as of the close,the Shanghai Composite Index rose by 1.16%,the ChiNext Index rose by 1.62%,the Hang Seng Index in Hong Kong rose by 0.47%,and the Hang Seng Technology Index fell by 0.14%.The total turnover of the two markets increased to 1.16 trillion yuan,with more than 4,100 companies experiencing gains.

Looking at the sectors,construction decoration,comprehensive services,non-bank finance,commercial retail,and media industries led the gains.

Risk Warning:The stock market carries risks,and investment should be approached with caution.This article does not constitute investment advice,and readers need to think independently.