On the morning of May 7, monetary policies such as interest rate cuts and reserve requirement ratio cuts were officially implemented, and measures to stabilize market expectations were also introduced one after another, boosting investor confidence. On that day, the Shanghai Composite Index rose 0.8% to close at 3,342 points, and the total transaction volume of Shanghai, Shenzhen and Beijing was 1.51 trillion yuan.

Industry insiders believe that the sharp drop caused by Trump's tariff policy in April lasted only one day. After the negative news was digested, the market immediately stood firm. As the policy was gradually introduced, A-shares are expected to fluctuate upward. Investors should also pay close attention to changes in market transactions and uncertain factors such as tariff negotiations. They can pay attention to technology stocks and stocks with positive expectations in the semi-annual report.

On the morning of May 7, the Governor of the People's Bank of China Pan Gongsheng released several major news at the press conference of the State Information Office: announcing the reduction of the deposit reserve ratio by 0.5 percentage points, which is expected to provide the market with a long-term liquidity of about 1 trillion yuan; the policy interest rate is reduced by 0.1 percentage point, that is, the open market's 7-day reverse repurchase operation interest rate, which is reduced from the current 1.5% to 1.4%, which is expected to drive the loan market quotation rate (LPR) to decline by about 0.1 percentage point simultaneously. Wu Qing, Chairman of the China Securities Regulatory Commission, responded to market concerns on hot issues such as stabilizing market expectations, stimulating market vitality, supporting the development of new quality productivity, and guiding long-term funds to enter the market, and announced a number of important measures.

Li Qian, an investment consultant at Huiyan Zhitou Technology Co., Ltd., analyzed to the First Financial Daily that the central bank's reserve requirement ratio cuts are good for the market, and A-shares have opened high and fluctuated, and the trading volume has increased significantly. From April to now, except for the sharp drop caused by US tariff policies on April 7, the market trend has been fluctuating upward. Overall, A-shares will experience a volatile upward trend, but considering some changes in the current international situation, the increase may not be large. In terms of grasping the main hot spots in the future, the technology and artificial intelligence sectors are expected to remain the main line of the market, and individual stocks with expected growth in the next half-year report can also be tracked.

Hu Yu, chief economist of Xinding Fund, believes that A-shares are still at the starting point of a long-term bull market. The measures mentioned by the head of financial supervision have boosted market confidence and planned a blueprint for the long-term bull market of A-shares. Short-term monetary policies such as lowering the reserve requirement ratio and interest rate cuts are implemented simultaneously with medium- and long-term market policies, which are important benefits to the capital market and the real estate market, and are conducive to stabilizing expectations and markets, and stabilizing consumption and investment. It is expected that the entry of funds in the medium and long term and the increase in the valuation of the stock market will not be short-term. The "national team" represented by Huijin and the entry of patient capital and long-term money such as social security and insurance are all strategic layout operations. Investors can wait for the gradual entry of residents' savings funds to enter the market in the future.