On August 18, the large financial sector turned red across the board. Based on the SW first-level industry classification, the non-banking financial sector rose 5.54% during the day, while the banking sector increased by 3.61%, leading the gains in both markets.
Although non-bank analysts attempted to explain the driving force behind the rise of these broker stocks using the fundamental logic of wealth management, since the logic of broker wealth management has always been present, it cannot explain why the large financial sector made such an ‘outstanding advance’ today specifically.
Moreover, currently, from the perspective of private equity professionals, there has been no shift in macro policy. The current period remains a 'window phase' with less pressure for stable growth, and monetary policy is mainly focused on stability. There are no major factors for change or the basis for a full-scale index bull market, thus there is also no foundation for stimulating a significant breakout in broker sentiment.
However, at the market news level, from last night to this morning, the message “property tax is coming” was wildly circulated by various self-media outlets and became the focus of attention in numerous chat groups. If property tax were to begin being widely levied, it would accelerate the flow of investment funds from real estate into the large asset management industry, which might explain why broker, bank, and insurance stocks all surged.
However, 15 minutes before the market closed today, the Shanghai Tax Bureau issued a clarification denying the rumors. This means that if the rise in the large asset management sector was due to the “imposition of property tax,” related stocks may face significant risks tomorrow.
Is the personal property tax coming? Shanghai Tax Bureau denies rumors
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