Shanxi Securities Co.Ltd(002500) believes that the rise of CPI restricts the decline of short-term policy interest rate. In terms of medium-term factors, the decline of risk-free interest rate is limited, the expectation of economic fundamentals is weak, and the market does not have the basis for a sharp rebound. The hype funds intensively released to the performance vacuum period in the company’s three quarterly reports this week have broken a basin of cold water, which will once again trigger the market’s examination of enterprise fundamentals. The current valuation level of the market will be tested by performance growth, and the funds will adjust their positions and allocation ratio to the industry. In terms of industry allocation, it is recommended to continue to over allocate real estate, large infrastructure and building materials with steady growth of undervalued value, agriculture, forestry, animal husbandry and fishery with obvious supply and demand gap in the near future, and non bank sector (insurance) with obvious policy preference. Standard power, high-speed, express, banking and other industries with higher certainty. Avoid food and beverage, household appliances and automobiles.
(Securities Times)
