The Chinese stock market is so unpredictable - it can compress months of gains into just a few days. Now is another good time for portfolio rebalancing. The central bank is supporting listed companies' stock buybacks with a 2.25% loan rate, which is a long-term positive for companies with stable cash flow, reliable long-term performance and dividend yields exceeding 2.25%. For resolving local debt issues, local governments have another option - securitization of quality local assets. By diluting equity, they can raise substantial funds to repay debts. In my view, quality state-owned listed companies will remain promising investment targets in the coming period. My current strategy: hold steady with Shandong Gold and Sichuan Investment Energy.
Note: This post merely records my personal investment thought process and does not constitute investment advice. Invest at your own risk!
$Shandong Gold(SH600547)$ $Zijin Mining(SH601899)$ $Sichuan Investment Energy(SH600674)$
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