A-share stock index closed up collectively: from February 14 to February 18, the main A-share stock indexes rose collectively, of which the Shanghai Composite Index rose 0.80% to close at 3490.76 points, the Shenzhen Component Index rose 1.78%, the gem index rose 2.93%, the Shanghai and Shenzhen 300 rose 1.08%, and the science and innovation 50 rose 2.97%. This week, Shenwan level industries rose more or fell less, among which power equipment, non-ferrous metals, medicine and biology ranked first, while non bank finance, public utilities and banks fell significantly.
The increment of transaction price decreased, and investor confidence was slightly repaired: the market activity weakened this week, and the market turnover decreased month on month. The average daily trading volume of the two cities during the week was 843.678 billion yuan, a decrease of about 7.62% compared with last week. In addition to the CSI 500, the turnover rate of the main broad stock indexes has declined. In terms of industries, the trading volume of the power equipment sector was active this week, ranking first for three consecutive weeks. The trading volume of that week was 374.167 billion yuan, while the pharmaceutical, biological and computer sectors still ranked second and third. The trading volume of that week was 349.708 billion yuan and 331.84 billion yuan respectively.
Investment suggestion: in 2022, with the low growth rate of real estate investment and the weakening of China’s export growth momentum, the pressure on steady growth will increase. Especially in the first quarter, the necessity of accelerating infrastructure investment will increase. From the perspective of funds, at present, more than 10 provinces, cities and autonomous regions across the country have announced the planned investment amount of major projects this year, actively responded to the opinion of “moderately ahead of infrastructure investment”, significantly accelerated the issuance of superimposed special bonds, and the availability of funds is better than expected, which will promote the formation of physical workload. From a policy perspective, recently, the national development and Reform Commission said that the overall layout design of “counting from the east to the west” was completed and the project was officially launched. It means that the project of “counting from the east to the west” has entered the landing stage. It involves digital infrastructure such as data center, cloud computing and power supply. From the perspective of valuation level, the current valuation level of infrastructure sector is still at a historically low quantile and still has allocation value. In terms of industry, it is suggested to pay attention to: 1) the necessity of steady growth of infrastructure investment has increased significantly, and the large infrastructure sector has risen. Continue to explore the allocation opportunities of high-quality targets in the infrastructure field; 2) Market sentiment has warmed up. After nearly two months of substantial adjustment, the popular track has rebounded in stages. You can pay attention to the opportunities after adjustment.
Risk factors: the epidemic situation worsened, the macro-economy was less than expected, and the regulatory policies were tightened.
