In the morning trading on February 11, the main indexes of A-Shares showed differentiation. The Shanghai stock index opened low and went high, turning red strongly; Although the Shenzhen Composite Index and the gem index fell, the decline was narrower than the peak in the session.
From the disk perspective, the strong rise of real estate, finance and other sectors has played a role in boosting market confidence. In addition, the civil explosion and other market segments have attracted financial attention, and Poly Union Chemical Holding Group Co.Ltd(002037) has realized the eight connected board.
Looking forward to the future, the risk factors in the A-share market are gradually fading, and the emergence of potential positive factors may promote the market’s restorative rebound.
real estate and financial stocks
As of the noon closing on February 11, the Shanghai index rose 0.34%, the Shenzhen Component Index fell 0.31% and the gem index fell 1.36%.
In terms of industry sectors, among the shenwanyi industry index, coal, non bank finance, building materials, banking, petroleum and petrochemical, real estate and other sectors led the increase.
Medicine and biology, beauty care, electronics, automobile and other sectors led the decline.
The strong performance of the financial and real estate sectors boosted the overall confidence of the market. Tahoe Group Co.Ltd(000732) , Shenzhen New Nanshan Holding (Group) Co.Ltd(002314) , Rongan Property Co.Ltd(000517) and other real estate stocks rose by the limit; In addition, Xiangcai Co.Ltd(600095) , Lanzhou bank and other financial stocks also showed strong performance.
Poly Union Chemical Holding Group Co.Ltd(002037) gain eight connected boards
In addition to finance and real estate, some subdivided concept sectors and individual stocks have also attracted market attention. As of the midday closing, the performance of the civil explosive sector was eye-catching, Poly Union Chemical Holding Group Co.Ltd(002037) gained eight consecutive boards, and Shanxi Huhua Group Co.Ltd(003002) , Sichuan Yahua Industrial Group Co.Ltd(002497) also rose.
According to public information, Poly Union Chemical Holding Group Co.Ltd(002037) is a national high-tech enterprise, which is committed to the R & D, production and sales of various civil explosive products, and provides customers with specific blasting engineering solutions and technical services. In December 2021, Poly Union Chemical Holding Group Co.Ltd(002037) announced that it planned to acquire 70% equity of satellite chemical held by Hebei state control in cash through public delisting. It is understood that satellite chemical is the largest detonator manufacturer in Hebei Province, with a licensed production capacity of 112.5 million detonators, including 13 million electronic detonators.
In terms of news, the Ministry of industry and information technology recently issued the safety development plan for the civil explosives industry in the 14th five year plan, which proposed to encourage enterprise restructuring and integration, and tilt to the top ten enterprises in terms of industry policies, so as to support the merger and reorganization of advantageous enterprises, support the combination of excellence and strength among enterprises, and improve the industrial concentration; Further optimize the product structure, comprehensively promote industrial digital electronic detonators in 2022, continue to reduce the licensed production capacity of packaged industrial explosives, and steadily increase the proportion of the licensed production capacity of on-site mixed explosives. The plan clearly gives the time node for the full use of digital electronic detonators, that is, stop production before the end of June 2022 and stop sales of other industrial detonators except industrial digital electronic detonators before the end of August 2022.
restorative rebound will appear
Meng Lei, China strategy analyst at UBS Securities, pointed out that the risk factors in the A-share market are gradually disappearing, and the emergence of potential positive factors may promote a restorative rebound in the market. Specifically, there are four possibilities:
First, stronger monetary policy easing, including further RRR reduction, five-year LPR interest rate reduction and even further MLF interest rate reduction.
Second, the transmission of “broad money” to “broad credit” accelerated, and credit growth continued to rebound.
Third, strengthen the support for the real estate industry, including moderately relaxing the restrictions on housing loans, accelerating the approval of housing loans, further relaxing the restrictions on developers’ access to bank loans and financing in the onshore bond market, reasonably relaxing the supervision of some pre-sale funds, etc.
Fourth, support for infrastructure projects has increased, and the growth rate of infrastructure investment has rebounded significantly.
Meng Lei suggested paying attention to the following four stock portfolio strategies: undervalued “steady growth” related sectors, such as household appliances, furniture and selected stocks with long-term growth in infrastructure and banking sectors; Growth stocks with bargain hunting layout and valuation callback to a reasonable level; Consumer stocks with high-quality growth attributes; High dividend yield stocks.
Lu bole, chief strategist of Baida asset management in Switzerland, believes that with the global economy accelerating again under the leadership of China and the strong growth of corporate profits, the prospect of China’s stock market is promising. He raised China’s stock rating from neutral to positive and remained overweight on China’s treasury bonds.
