China's A-share market expected to extend rebound after Spring Festival holidays: analysts

China's A-share market is expected to extend its rebound on Monday, the first trading day after the Spring Festival holidays, on the back of robust travel and consumption figures as well as new policies to bolster the economy and promote the healthy development of the capital market, analysts said.

Thanks to improving economic recovery and more supportive government policies to stabilize growth, both the A-share and Hong Kong stock markets will likely continue a bull run in 2024, and investors will also likely gain more than last year, Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times.

During the eight-day Spring Festival holidays, the Hong Kong stock market rose for the third straight day on Friday, with the Hang Seng index climbing 2.48 percent to reach 16,339.96 points. The Hang Seng Tech index rose by 3.71 percent to reach 3,343.22 on Friday.

"The A-share market is expected to echo the Hong Kong stock market to extend a rebound on Monday," Yang said, calling for enhanced patience and confidence in the the Chinese stock market.

The country's robust macro-economic performances during the Spring Festival are also good news for investors.

China's tourism sector recorded 474 million domestic tourist trips during the 2024 Spring Festival holidays, up 34.3 year-on-year, with total travel spending reaching 632.69 billion yuan ($88.89 billion), up 47.3 percent year-on-year, data from the Ministry of Culture and Tourism showed on Sunday.

China's box office revenue during the eight-day Spring Festival recess through Saturday exceeded 8 billion yuan, hitting a record high, official data showed on Sunday.

In addition, the CSRC's tighter oversight of listed companies is noticed by investors. For example, S2C Ltd's fraudulent activities in its attempt to list on Shanghai's tech-heavy STAR Market, underscored the authorities' resolve to build a healthy capital market and protect the interests of small and medium-size investors, Yang said.

On February 7, the Communist Party of China (CPC) Central Committee made a decision to appoint Wu Qing as secretary of the Party committee of the China Securities Regulatory Commission (CSRC), replacing Yi Huiman, the Xinhua News Agency reported.

Zheshang Securities analysts said in a note that multiple indexes have shown that A-share market may have already hit a historical low, and overall yields are expected to recover, boosted by a set of macro-policies to stabilize growth and high-quality development.

Analysts with Soochow Securities Co, which is based in Suzhou, East China's Jiangsu Province, said in a note that 2024 will be a start for a new round of bull run for the A-share market, with core assets likely to witness rising value gains, the Securities Times reported on Sunday.