In the current period (from January 24 to January 28), the industry wide index fell to varying degrees. The industries with smaller declines were power equipment, agriculture, forestry, animal husbandry and fishery, commerce and retail, down 1.92%, 2.12% and 2.26% respectively compared with the previous period (January 21). The industries with large decline were computer, media and coal, down 9.69%, 9.66% and 8.50% respectively compared with the previous period. Since the beginning of the year, except the banking sector rose by 2.33%, the indexes of other industries have declined. The top two industries with smaller declines are real estate and transportation, down 1.23% and 2.88% respectively. Defense and military industry, medicine and biology and media were industries with a deeper decline, down 17.92%, 14.93% and 14.40% respectively.
From the perspective of important indexes: as of January 28, the total ape (TTM) of wind was 18.19 times, about 29.42% of the historical quantile since 2000. Wind’s total a (excluding finance, petroleum and petrochemical) pe (TTM) is 27.99 times, which is about 35.13% of the historical quantile since 2000. The risk premium ERP of most important indexes in the current period (January 24-january 28) has rebounded compared with the previous period. SSE 50, CSI 300, CSI 500 and AERP were 6.627%, 4.954%, 2.766% and 2.796% respectively.
From the perspective of Industry Valuation: industry PE: the industries with low historical quantile of PE valuation are real estate, non bank finance and petrochemical industry. Only the percentile of PE valuation of power equipment is more than 70%. The industries with low historical quantile of Pb valuation are non bank finance, comprehensive and banking. The historical percentile of Pb valuation of electrical equipment, food and beverage and beauty care is more than 80%.
Ah share premium: as of January 28, the ah share premium index was 137.95, in the historical percentile of 81.74%.
Comparison of PE between China and the United States: as of January 28, the industries with A-Shares higher than that of the United States were materials, daily consumer goods, medical care and information technology. The industries with low PE level of A-Shares compared with US stocks are energy, industry, optional consumption, finance, public utilities, real estate and telecommunications.
Risk tip: monetary policy exceeded expectations, epidemic spread exceeded expectations, and Sino US friction intensified
