Aug. 22 2024 (InvestinChina.asia) – Seasonal factors have a significant impact on investor sentiment in the China stock market, according to an analysis released by China Securities Co., Ltd. (CSC).
The analysis focused on seasonal patterns in market sentiment, including the spring market working up (春季躁动), the period around New Year’s Day and Chinese New Year, the time before and after the National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) sessions, the April effect, and the period around National Day.
During the spring market working up, investor sentiment generally rises, leading to increased market activity. Around New Year’s Day and Chinese New Year, market sentiment tends to show a pattern of pessimism before the holiday and optimism afterward.
Before the NPC and CPPCC sessions, market sentiment increases, but it typically falls during and after the meetings.
In April, due to earnings season and the realization of previous policy expectations, the sentiment index tends to decline.
Prior to National Day, investor sentiment is low, but it improves after the holiday.
The analysis confirms that seasonal factors play a significant role in shaping market sentiment.