Market review: the index opened higher and went higher, led by the strong rise of infrastructure cement
On the first trading day after the festival, the Shanghai and Shenzhen index opened higher and went higher. As of the close, the Shanghai index rose 2.03% to 3429.58 and the Shenzhen index rose 0.96% to 13456.65. In terms of sectors, architectural decoration, petroleum and petrochemical and building materials led the rise, while computers, media and social services led the decline. The turnover of the two cities was 823.13 billion yuan, an increase of 0.52% over the previous trading day and a contraction of 2.86% over the average of the previous five days. The trend of Shanghai Stock connect and Shenzhen Stock connect was significantly differentiated. The net purchase of Shanghai Stock connect was 6.628 billion yuan, the net sales of Shenzhen Stock connect was 1.076 billion yuan, and the net purchase of northbound funds throughout the day was 5.552 billion yuan.
Market focus:
According to caixin.com on February 7, in January 2022, affected by the spread of the epidemic and the corresponding increase in prevention and control measures, China’s service industry maintained expansion, but the expansion momentum was significantly weakened. In January, Caixin China general service industry business activity index (service industry PMI) was 51.4, down 1.7 percentage points from the previous month, indicating a slight expansion of service industry activities, but the growth rate slowed to the lowest in nearly five months. Enterprises generally reflect that the expansion of business activities is due to the increase of new business volume, but the epidemic situation and corresponding epidemic prevention measures restrict the overall growth rate.
Strategy suggestion: focus on high-end manufacturing concept sector
Today, the two cities achieved a “good start” as scheduled. The Shanghai index showed a strong performance throughout the day, with an increase of more than 2%. The Shenzhen index fell back after rising in early trading, and the increase gradually narrowed. On the whole, the market sentiment has been significantly repaired. The northward capital has realized a net inflow again, with individual stocks rising more and falling less, with a rise / fall ratio of 3399:1111. In terms of macro economy, China’s Caixin service PMI fell again in January, mainly reflecting the impact of the recent resurgence of the epidemic in China on the pace of recovery of the service industry. At present, China’s scientific epidemic prevention policy puts more emphasis on “precise prevention and control”. Previously, the “one size fits all” prevention and control method in some places has been gradually corrected. Covid-19 is expected to return from “pandemic” to “endemic disease”. Although it is difficult to completely eliminate the sporadic outbreak of the epidemic in the short term, the probability of large-scale impact is low, With the upgrading of epidemic prevention facilities of local and community units and the gradual accumulation of epidemic prevention experience, the impact of the epidemic on China’s economy will weaken as a whole, which will accelerate the recovery of the service industry, and the profits of subdivided industries such as hotels and scenic spots are expected to improve marginally. It is suggested to focus on hot topics such as the development of ice and snow industry and cultural theme construction, Tap high-quality targets and gradually intervene. At the same time, from the medium and long-term trend of macro-economy, we believe that compared with the comprehensive transformation of service industry, China’s strategic direction of making up for the short board of manufacturing development and focusing on the layout of high-end manufacturing industry is more firm. It is suggested to focus on investment opportunities in the development of new materials and domestic substitution of core parts and components.
In terms of the general trend of a shares, the steady growth measures in the first quarter may accelerate the implementation, driving the continuous agitation of the concept of “steady growth”. Under the background of large downward pressure on the economy and high risk of external market uncertainty, the “structural bull” will still be the main theme of the market, and high-end manufacturing, mandatory consumption, sports, culture and tourism may go out of a relatively independent market under the support of valuation, It is suggested to focus on. In terms of sectors, today’s “steady growth” sectors such as infrastructure and cement showed strong performance, with the highest increase throughout the day, mainly reflecting the policy underpinning economy’s boost to market sentiment, and the real estate sector rose sharply in the afternoon, mainly due to the improvement of credit and liquidity environment in the first quarter, which is expected to drive the phased recovery of the real estate industry. The performance of media, computer and other sectors is poor, but the internal differentiation of the sector is obvious. On the whole, we are still optimistic about the opportunities of domestic animation production, digital economy related hardware facilities and other segments.
