Morning Update | Dongguan Rural Commercial Bank (9889.HK) under pressure, financial sector weakness continues

Dongguan Rural Commercial Bank continued to face pressure yesterday, significantly impacted by industry deleveraging and the implementation of new regulatory policies. Overall, funds flowed out of the sector, with major players reducing their holdings, resulting in low market sentiment. The stock price remained below historical averages throughout the day, with weak technical trends and a lack of rebound momentum during trading. Trading volume shrank, and the willingness of short-term market participants to chase was extremely low. The valuation of the financial sector is constrained by policy direction, and macro disturbances are difficult to alleviate, with no improvement in the weak pattern expected in the short term. It is recommended to continue monitoring signals of policy easing and capital flow; if signs of oversold rebounds appear, then speculation may be considered, but currently, a defensive approach is advised to avoid active participation