The industries with large growth in this period (February 14-february 18) are power equipment, non-ferrous metals, medicine and biology, up 5.53%, 5.31% and 4.85% respectively compared with the previous period (February 11). Non bank finance, public utilities and transportation fell by 3.93%, 1.21% and 1.06% respectively compared with the previous period. Since the beginning of the year, the top three industries are coal, building decoration and banking, up 11.12%, 8.41% and 7.45% respectively. Defense and military industry, electronics and power equipment were industries with a deeper decline, down 16.83%, 14.27% and 13.59% respectively.
From the perspective of important indexes: as of February 18, wind’s total ape (TTM) was 18.82 times, about 32.1% of the historical quantile since 2000. Wind’s total a (excluding finance, petroleum and petrochemical) pe (TTM) is 28.67 times, about 36.63% of the historical quantile since 2000. The risk premium ERP of most important indexes in the current period (February 14-february 18) decreased compared with the previous period. SSE 50, CSI 300, CSI 500 and AERP were 6.17%, 4.66%, 2.44% and 2.52% respectively.
From the perspective of Industry Valuation: the industries with low historical quantile of PE valuation are real estate, media and non bank finance. The top three are food and beverage, power equipment and beauty care. The industries with low historical quantile of Pb valuation are non bank finance, banking and real estate. The historical percentile of Pb valuation of power equipment, food and beverage and beauty care is more than 80%.
Ah share premium: as of February 18, the ah share premium index was 138.46, in the historical percentile of 82.34%.
Comparison of PE between China and the United States: as of February 11, the industries with A-Shares higher than that of the United States were materials, daily consumer goods, medical care, information technology and telecommunications. The industries with low PE level of A-Shares compared with US stocks are energy, industry, optional consumption, finance, public utilities and real estate.
Risk tip: monetary policy exceeded expectations, epidemic spread exceeded expectations, and Sino US friction intensified
