Citigroup: Favorable policies and increased investor confidence may drive the SSE Index to break through 3,500 points

Citigroup analysts stated that driven by favorable policies and increased investor confidence, the Shanghai Composite Index is expected to break through 3,500 points. External factors such as expectations of interest rate cuts by the Federal Reserve and easing geopolitical risks have also boosted market sentiment. The Chinese government is encouraging the shift of household assets towards stock allocation by reducing transaction costs and optimizing capital market rules, thereby activating market vitality. The policy dividends will expand the business space for investment banking and wealth management, and the performance of brokerage stocks is expected to improve. Citigroup has upgraded its rating on Chinese stocks to "Overweight," believing that 2025 will be a turning point year for the Chinese economy