--- title: "【True Insight Hong Kong Stock Masters】The three major U.S. stock indices fell back, and the China Securities Regulatory Commission (CSRC) introduced multiple measures to promote medium- and long-term capital inflows into the market, bringing multiple benefits to the development of A-shares." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/26797261.md" description: "Hong Kong stock market trends and analysis: US stocks fell last Friday, with indices experiencing profit-taking after multiple days of gains, and all three major indices closed lower. The US dollar weakened, and the yield on the 10-year US Treasury note dropped to 4.61%. Gold prices performed well, while oil prices were slightly softer. Hong Kong ADRs showed little change, and the market is expected to lack direction in early trading. Mainland stocks rose last Friday, with stable US-China relations boosting market sentiment. The Shanghai Composite Index opened lower but closed 0.7% higher, though trading volume in Shanghai and Shenzhen slightly decreased. Hong Kong stocks moved higher, mainly benefiting from US President Trump expressing confidence in reaching a trade deal with China..." datetime: "2025-01-27T02:07:59.000Z" locales: - [en](https://longbridge.com/en/topics/26797261.md) - [zh-CN](https://longbridge.com/zh-CN/topics/26797261.md) - [zh-HK](https://longbridge.com/zh-HK/topics/26797261.md) author: "[真灼财经](https://longbridge.com/en/profiles/1067948.md)" --- # 【True Insight Hong Kong Stock Masters】The three major U.S. stock indices fell back, and the China Securities Regulatory Commission (CSRC) introduced multiple measures to promote medium- and long-term capital inflows into the market, bringing multiple benefits to the development of A-shares. **Hong Kong Stock Market Trends and Analysis** U.S. stocks fell last Friday, with indices experiencing profit-taking after multiple days of gains, resulting in declines across all three major indices. The U.S. dollar weakened, and the 10-year Treasury yield dropped to 4.61%. Gold prices performed well, while oil prices were slightly softer. Hong Kong's pre-market ADRs showed little change, suggesting a lack of direction in early trading. Mainland stocks rose last Friday, buoyed by stable Sino-U.S. relations, with the Shanghai Composite Index opening lower but closing up 0.7%, though trading volume slightly decreased. Hong Kong stocks advanced, boosted by U.S. President Trump's confidence in reaching a trade deal with China and his call for the Federal Reserve to continue cutting rates. The stronger RMB helped the index reclaim the 20,000-point mark, with overall trading volume also increasing. As the holiday season approaches, trading is expected to quiet down, with resistance near 20,200 points and support at 19,700. **Industry News** The China Securities Regulatory Commission (CSRC) is promoting long-term capital inflows to foster high-quality development in the capital market. It aims for public funds to increase their A-share holdings by at least 10% annually over the next three years. For commercial insurance funds, large state-owned insurers are encouraged to allocate 30% of new premiums to A-share investments starting in 2025. Long-term capital will undergo comprehensive multi-year performance evaluations, with public funds, state-owned insurers, basic pension funds, and annuity funds all subject to 3+ year cycles. The CSRC will significantly reduce the weight of annual performance metrics for state-owned insurers and refine 5+ year evaluations for the National Social Security Fund. A second pilot for long-term equity investments by insurance funds will launch in H1 2025, targeting at least RMB 100 billion. The plan addresses bottlenecks for long-term capital entry, emphasizing commercial insurance, the National Social Security Fund, basic pensions, corporate annuities, and public funds. It introduces 5+ year evaluations for the National Social Security Fund and 3+ years for basic pensions, a major institutional breakthrough. Public fund sales fees will be further reduced, saving investors ~RMB 45 billion annually. Listed companies are encouraged to distribute "holiday red packets," with over 310 firms expected to pay ~RMB 340 billion in dividends before the Lunar New Year. Foreign capital, including global pensions and insurance funds, remains a key A-share funding source. The CSRC reaffirmed its commitment to market-oriented, rule-based, and international reforms, promising greater openness and stability for cross-border investment. These policies are expected to boost A-share liquidity, benefiting brokerages, while long-term capital inflows may favor stable, high-dividend stocks and China-specific valuations. (The author is an SFC-licensed professional with no holdings in mentioned stocks.) Guo Jiayao CFA, Business Development Director, Harbor Family Office Date: Saturday, January 25, 2025 ### Related Stocks - [000001.CN](https://longbridge.com/en/quote/000001.CN.md) - [399001.CN](https://longbridge.com/en/quote/399001.CN.md)