Market review: the index fluctuated and rose throughout the day, and the TMT sector recovered collectively
Today, the Shanghai and Shenzhen index rose all the way after opening. As of the close, the Shanghai index rose 0.79% to 3479.95 and the Shenzhen index rose 1.55% to 13531.31. In terms of sectors, communications, computers, food and beverage led the increase, while banks, architectural decoration and real estate led the decline. The turnover of the two cities was 931.78 billion yuan, an increase of 6.03% over the previous trading day and 12.59% over the average of the previous five days. The net purchase of Shanghai Stock connect was 983 million yuan, the net sales of Shenzhen Stock connect was 499 million yuan, and the net purchase of northbound funds was 484 million yuan throughout the day.
Market focus:
The State Council recently approved the establishment of cross-border e-commerce comprehensive pilot zones in 27 cities and regions, including Inner Mongolia Eerduosi Resources Co.Ltd(600295) , according to the Chinese government website on the 8th. The reply clearly stated that the construction of cross-border e-commerce comprehensive pilot zone should adhere to innovation driven development, copy and promote the mature experience and practices of the first five batches of comprehensive pilot zones, give full play to the positive role of cross-border e-commerce in helping the transformation and upgrading of traditional industries and promoting the digital development of industries, guide the healthy and sustainable innovation development of cross-border e-commerce, and go all out to stabilize the basic market of foreign trade and foreign investment, Promote high-quality development of trade.
Strategy suggestion: continue to pay attention to the concept of digital economy
Today, after the opening of the two markets, they continued to fluctuate and rise, and the rise in the afternoon further expanded. The volume closed up all day, and the market activity increased significantly. At the same time, the Shenzhen index fought back strongly, with an increase of more than 1.5% all day. Individual stocks rose more and fell less again, with a rise and fall ratio of 3535:991. In terms of sectors, the TMT sector recovered collectively, the communication sector led the rise all day, China Mobile closed the morning trading limit, the market value reached a new high, and the related concept sectors such as digital currency, network security and financial technology performed strongly all day, leading the rise. The agriculture, forestry, animal husbandry and fishery sector surged rapidly after opening and was at a high level all day. The concept sectors such as chicken industry and pig industry all performed well. Food, beverage, military and social service sectors continued to expand in the afternoon, Baijiu concept sector stocks rose. At the same time, the real estate, infrastructure and banking sectors took a rest and closed down slightly throughout the day.
We believe that the overall performance of the A-share market is verifying that the “emotional bottom” we mentioned earlier has been realized. Looking forward to the future market, we believe that the market will continue to pick up, while the trend upward momentum is still insufficient, and the structural market is still the main line. In terms of allocation, after a long period of adjustment, the overall valuation of TMT sector has been at a historical low. From a macro perspective, the development of digital economy and international competition and cooperation have become the key strategic development direction of China’s 14th five year plan. Local governments have also successively issued specific development plans such as digital economy and meta universe, It is suggested to grasp the investment opportunities under this trend opportunity, combined with the specific cyclical and growth characteristics of the sector, focus on the layout from the aspects of technical advantages and performance cashability, and consider the impact and impact of the US “small courtyard and high wall” trade policy towards China on relevant sub sectors. In addition, the livestock and poultry breeding sector may gradually enter the profit upward cycle. It is suggested to pay attention to the marginal change of production capacity and intervene in time.
