LED stocks benefited from the central bank's interest rate cut and surged across the board. Do you still have your Audi?

Last week, the originally "bullish" stock market fell for three consecutive days. As of the close of trading on May 7, the Shanghai Composite Index fell for three consecutive trading days, with a cumulative decline of 368 points, averaging about 122 points per trading day. The jokers among the stock investors also showed their talents in the "extreme grief". They not only used "Audi the day before yesterday, Alto the day before yesterday, Mystery yesterday, Oreo today" to joke about the speed of the stock price decline, but also systematically organized the highest floors in Shenzhen to prepare for investors with weak psychological endurance to "jump off the building."

However, yesterday’s announcement from the central government gave investors hope of reopening Oreo from the stock market to Audi. The central bank announced that starting from the 11th, the one-year loan benchmark interest rate of financial institutions will be reduced by 0.25 percentage points to 5.1%; the one-year deposit benchmark interest rate will be reduced by 0.25 percentage points to 2.25%. At the same time, the upper limit of the floating range of deposit interest rates of financial institutions will be adjusted from 1.3 times to 1.5 times the benchmark deposit interest rate.

Buoyed by this news, the two cities opened higher in early trading today. The Shanghai Composite Index once fell below 4,200 points during the session, and then quickly rose by more than 1%. As of the close at 3 p.m., the Shanghai Composite Index rose 3.04% to 4,333.58 points, and the Shenzhen Component Index rose 2.66% to 14,866.22 points. The two cities had more than 100 stocks at their daily limit.

LED concept stocks, which were also affected by the market's plunge last week, are all in the red today and have taken advantage of the opportunity to soar. As of the close of trading at 3 pm today, among the 34 LED-related concept stocks, except for the 8 stocks that were suspended, the remaining 26 stocks rose across the board, and no company "dropped the chain." Among them, three stocks, Mulinsen, Crystal Optoelectronics, and Xinhaiyi, rose by their daily limit, Changfang Lighting rose by 8.87%, Qinshang Optoelectronics rose by 8.71%, and Wanrun Technology rose by 7.85%. The one with the smallest increase was packaging giant Nationstar Optoelectronics, which only increased by 0.61%, while the lamp king Fo Zhao ranked second from the bottom with an increase of 2.63%.

According to Securities Daily, Li Daxiao, chief economist of Yingda Securities, said that the central bank’s interest rate cut aims to use strong measures to stabilize economic growth, which will help reduce corporate financing costs and stabilize the real estate market. At the same time, it will have a very important impact on slowing down the speed and rhythm of the stock market’s decline.