Brokerages Advise Holding Stocks Through Holiday, Citing High Post-National Day Rally Probability

Published Sep 28, 07:18 AM UTC

As China's National Day holiday approaches, investors are debating whether to hold stocks or cash. On September 28, A-share markets continued their recent consolidation, with the Shanghai Composite falling 1.74% and the Shenzhen Component dropping over 3% by midday. Despite the downturn, multiple brokerages recommend 'holding stocks through the holiday,' citing historical calendar effects. CITIC Securities notes that the current adjustment is driven by seasonal and trading factors, predicting a post-holiday rebound. East Money Securities, after reviewing 20 years of data, finds that the two days before the holiday are often the best buying window, with small-cap stocks showing strong post-holiday performance. Zhongtai Securities advises maintaining a 'tech offense, energy security hedge' portfolio, arguing that the cost of selling tech stocks has diminished and that long-term funds are still accumulating. CITIC Securities sees the third-quarter earnings season as the last offensive window of the year, recommending a focus on tech leaders, resources, and financials. The article attributes all forecasts and conditions to the respective institutions.

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