This week is the last trading week of the Lunar New Year and January 2022 of the Gregorian calendar. Affected by the violent shocks in the global securities market, the risk aversion of funds going north rose sharply, and positions were sharply reduced this week. Among them, the net sales on Thursday exceeded 14.6 billion yuan, the fifth largest one-day net sales in history; On Friday, net sales again reached 12.5 billion yuan, also breaking into the top 10, the eighth largest single day net sales in history. The total net sales of the whole week was as high as 26.1 billion yuan, the fifth largest weekly net sales in history.
However, due to the continuous increase of positions at the beginning of the year, the northbound capital still increased the position of A-Shares by 16.8 billion yuan in January, which was the 16th consecutive month of net purchase, equaling the historical record of continuous monthly net purchase. The last time northbound capital bought net for 16 consecutive months was from the end of 2016 to the beginning of 2018. At that time, it was in the recovery period after the sharp decline of A-Shares in 2015. Northbound capital wantonly copied the bottom of blue chips with excellent performance. All kinds of “Mao” stocks led by Kweichow Moutai Co.Ltd(600519) also came out of the magnificent bull market from that time.
The bank gained more than 1.38 billion yuan of underperformed shares, which became the only safe haven in the industry with more than 1.38 billion yuan of underperformed shares. In January, the total net purchase of bank shares by northbound funds reached 19.2 billion yuan, more than the total net purchase of five industries including chemical industry and non-ferrous metals. A few industries such as public utilities, media, automobile, national defense and military industry also gained positions against the trend this week.
Due to the recent continuous adjustment of lithium, photovoltaic, wind energy and other sectors of the new energy track, the confidence of northbound capital holdings has also been shaken. This week, the electrical equipment industry sold more than 3.64 billion yuan, the only industry with a net sales of more than 3 billion yuan. The epidemic situation has improved, and many places have announced that it will be unsealed and reduced to a low-risk area. Biomedical stocks have also cooled rapidly, with a net sales of nearly 2.5 billion yuan throughout the week. The market was weak and the trading volume shrank sharply, once falling below 800 billion yuan, which also put pressure on securities companies. This week, the non-bank financial industry was also net sold by funds going north by about 2.1 billion yuan. The four industries of communication, electronics, food and beverage and non-ferrous metals were net sold by northbound funds this week, exceeding 1 billion yuan.
Northbound capital bucked the trend this week and bought China Merchants Bank Co.Ltd(600036) more than 1.374 billion yuan, the only stock with a net purchase of more than 1 billion yuan. Its total position once exceeded 1.65 billion shares, a record high, and its market value once exceeded 85 billion yuan, setting a new record. Since the new year, the accumulated net purchase China Merchants Bank Co.Ltd(600036) of northbound funds has exceeded 6.9 billion yuan, far ahead of other stocks. Industrial Bank Co.Ltd(601166) , Bank Of Chengdu Co.Ltd(601838) , Bank Of Jiangsu Co.Ltd(600919) and so on have also been significantly increased, and Agricultural Bank Of China Limited(601288) , Ping An Bank Co.Ltd(000001) and so on have been reduced by funds going north this week.
As of January 28, 19 listed banks have released their performance letters for 2021, all of which have achieved positive year-on-year growth, and the growth rate of net profit generally exceeds 20%. Among them, Bank Of Jiangsu Co.Ltd(600919) temporarily ranked first with a growth rate of 30.72%, followed by Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Bank Of Ningbo Co.Ltd(002142) with a growth rate of 29.77% and 29.67% respectively, and the net profit of China Merchants Bank Co.Ltd(600036) 2021 also increased by 23.2% year-on-year.
Citic Securities Company Limited(600030) said that the willingness of fund allocation to the banking sector was low in the fourth quarter of last year, suppressed by the economic boom and pessimistic expectations of asset quality. Since the beginning of the year, the policies related to steady growth, steady credit and steady expectation have been continuously increased, and the logical chain of loose policy – economic prosperity – expected improvement of credit risk has been established. Recently, the prosperity and stock price performance of the banking sector have significantly improved. It is expected that the public funds will pay more attention to the banking sector, which is expected to bring a virtuous circle. It is suggested to pay attention to the allocation value of the sector.
Contemporary Amperex Technology Co.Limited(300750) was one of the favorite stocks of northbound capital last year, but it has been continuously reduced since this year. Even though Contemporary Amperex Technology Co.Limited(300750) announced this week that it is expected to achieve a net profit of 14 billion yuan to 16.5 billion yuan in 2021, with a year-on-year increase of 150.75% ~ 195.52%, it failed to restore the determination of reducing the capital holdings of northbound. The net sales of 2.246 billion yuan throughout the week, the largest number of individual stocks sold this week, and a total of 3.181 billion yuan has been sold since January.
This week Kweichow Moutai Co.Ltd(600519) was also reduced by more than 3 billion yuan by going north, and Ping An Insurance (Group) Company Of China Ltd(601318) was sold by nearly 1.6 billion yuan. In January, in addition to Contemporary Amperex Technology Co.Limited(300750) , Jiangsu Hengrui Medicine Co.Ltd(600276) , Aier Eye Hospital Group Co.Ltd(300015) , Midea Group Co.Ltd(000333) , China Tourism Group Duty Free Corporation Limited(601888) were also net sold by northbound funds of more than 2 billion yuan.
