On the first trading day of the year of the tiger, A-Shares lived up to expectations, and all three major stock indexes received red. As of the close, the Shanghai index closed up 2.03%, the Shenzhen Composite Index rose 0.96% and the gem index rose 0.31%. Stocks in the two cities rose more or fell less, more than 3500 stocks were red, and the construction sector is now trading at the limit.
On the disk, oil and gas exploitation and services, infrastructure, coal, phosphorus chemical industry, cobalt, banking and other sectors led the increase; Communications services, education, covid-19 treatment and other sectors led the decline.
As of the closing, the rise / fall ratio of all trading stocks in Shanghai and Shenzhen was 3513:1125, with 110 trading limits and 47 trading limits.
In terms of northbound funds, the net inflow of northbound funds throughout the day exceeded 8.4 billion yuan, of which the inflow of Shanghai Stock connect exceeded 7.9 billion yuan and that of Shenzhen Stock connect exceeded 500 million yuan.
In terms of individual stocks, the daily limit shares today are as follows: China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) (10.01%), Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) (10.05%), Beijing Cuiwei Tower Co.Ltd(603123) (9.98%), Dalian Insulator Group Co.Ltd(002606) (9.97%), Shanghai New Centurion Network Information Technology Co.Ltd(605398) (10.00%). The down limit shares are as follows: Hunan Goke Microelectronics Co.Ltd(300672) (- 20.00%), Guo Shanghai New Culture Media Group Co.Ltd(300336) (- 10.03%), Shenzhen Das Intellitech Co.Ltd(002421) (- 10.05%), Guangdong Piano Customized Furniture Co.Ltd(002853) (- 10.01%), Gansu Huangtai Wine-Marketing Industry Co.Ltd(000995) (- 9.98%).
The top five stocks with turnover rate are: Suna Co.Ltd(002417) , Shipu detection, Shanghai New Centurion Network Information Technology Co.Ltd(605398) , Shandongsino-Agriunitedbiotechnologyco.Ltd(003042) , and Huakang medical, which are 58.227%, 57.926%, 50.862%, 46.839% and 44.318% respectively.
post festival market research and judgment
For the future, Ping An Securities believes that the A-share market has continued to adjust since the beginning of 2022. So far, the main market indexes have retreated by more than 20% from the high point in 2021. The valuations of the CSI 300 and gem index have returned to near the 60% quantile in recent ten years, and the valuations of various industry sectors have also fallen to varying degrees. At present, the three macro variables of growth, inflation and liquidity have basically established the policy bottom of this round of adjustment.
Li Daxiao said in an interview that during the Spring Festival holiday, Hong Kong, China’s Hang Seng index was the strongest, rising sharply by 4.34%, far ahead. South Korea composite index, Nikkei 225, Toronto 300 index and other five economies increased by more than 2%. Although metauniverse concept giant meta fell 26.39% on Thursday, the three major stock indexes in the United States also rebounded well, with an increase of more than 1%.
Li Daxiao said that although the adjustment of A-Shares is not as full as that of Hong Kong stocks, there is basically no chance of a 4% rise in Hong Kong stocks. On the premise of maintaining relatively cautious defense, there should be at least 1% small red envelopes. Li Daxiao said that A-Shares now need a red envelope, even a small red envelope.
Yang Delong, chief economist of Qianhai open source fund, said that in the medium term, the A-share market is expected to launch a spring offensive. Some negative factors that investors worried about before the festival, such as the Fed’s interest rate hike and the global outbreak, have actually been reflected in the decline of stock prices to a certain extent. Due to the poor market expectation in January, these negative factors have basically been reflected in the decline of stock prices, so this has created conditions for the counterattack of the A-share market after the festival.
Chen Guo, managing director and chief strategy officer, said that the current market sentiment has reached the lowest point in nearly three years, major stock indexes and industries have been fully adjusted, and there is a basis for rebound in the future. For a shares, the impact of “internal loosening” is greater than that of “external tightening”. The current strong RMB exchange rate will provide greater support for the independence and flexibility of China’s monetary policy. Therefore, although the current market has a lot of worries about the future market, we are still confident in the stabilization and rebound of the market after the festival.
What investment opportunities deserve attention after the festival? In terms of configuration, Chen Guo suggested to grasp the three lines of counterattack: 1) wide currency and wide credit continue to increase, and the stable growth market will continue to deduce; 2) At present, the high prosperity of some high-quality growth stocks is still supported by fundamentals, and the valuation contraction is expected to come to an end. The market began to respond to the expectations of the first quarterly report, and ushered in a counterattack after further verification of fundamentals; 3) The global Omicron epidemic has ushered in an inflection point. Some consumer varieties currently greatly affected by the epidemic are expected to benefit from the improvement of the epidemic and the support of China’s policy of expanding domestic demand. Focus on industries: new energy, food and beverage, electronics, banking, real estate, construction, etc.
Ping An Securities research report pointed out that the current policy bottom has appeared and the market bottom is gradually approaching. It is suggested to pay close attention to the landing of steady growth policy and market price signal to grasp the bottom timing. In terms of industry configuration, first, pay attention to the innovation driven main lines such as meta universe, digital economy and high-end manufacturing; Second, the main line of green development such as new energy vehicles and new energy; Third, pay attention to the marginal improvement of transportation, wine tourism and other sectors.
