Zhu Jiu's Insights (September 25)

Yesterday, the market surged sharply, with the Shanghai Composite Index posting a 100-point rally, skyrocketing 4.15% in a straight line—absolutely brutal! This was undoubtedly linked to the morning meeting, whether it was the cuts to reserve requirements, interest rates, or existing mortgage rates, or the groundbreaking move to provide loans for corporate buybacks—all were rare drops of rain in a parched funding pool.

But more importantly, the market itself had already fallen to a point of value. In my insights from the day before yesterday and yesterday’s early session, I directly stated that this was the "absolute low" and "absolute bottom." Liquidity was the spark, and the absolute low and bottom were the dry tinder—hence the brutal rally.

From a short-term perspective, this high-volume bullish candlestick could change market sentiment. No matter how the market fluctuates from here, the uptrend has already emerged—it’s just a question of how it plays out.

On the other hand, some are already mentioning a "bull market," which is way too early. The current measures are all aimed at sealing the bottom—downside risks are contained, but for a sustained, sharp rally, fundamental support is still needed. As for the real economy, further support should follow.

Support measures are important, but what’s even more critical is the shift in the underlying rationale—that’s the key. The old liquidity pool wasn’t small, but without the "cup" of real estate, drinking was still hard. Now, let’s see how effective the stock market cup turns out to be.