Index tracking
[Shanghai and Shenzhen composite index] Shanghai Composite Index rose 0.98% to close at 3673.04 points; The Shenzhen Component Index rose 1.23% to close at 15147.87; The gem index rose 1.01% to close at 3459.32.
[industry tracking] industry: 21 industries rose and 7 industries fell. Among them, the sectors of social services, medicine and biology and household appliances led the increase, with an increase of 4.86%, 2.09% and 1.94% respectively; Defense and military industry, power equipment and non-ferrous metals led the decline, with declines of – 0.75%, – 0.59% and – 0.38% respectively.
Industry comments
The pharmaceutical and biological sector led the increase. Affected by the news of centralized purchase this year, the overall decline of the pharmaceutical and biological sector is large. At present, the industry valuation is at a historical low and has a certain allocation value. The segment industries with the highest growth today are more inclined to the medical and American industry. In terms of the industry itself, China’s current medical and American penetration rate is much lower than that of Japan, South Korea and the United States, so there is a large market space. From the data, the sales growth of skin care products in November was higher than that in the same period last year. During the double 11, the sales of various products such as Proya Cosmetics Co.Ltd(603605) , Winona and Bloomage Biotechnology Corporation Limited(688363) increased significantly, and the overall prosperity of the industry was high. In terms of individual stocks, Aoyuan Beauty Valley Technology Co.Ltd(000615) , Lancy Co.Ltd(002612) and other stocks rose by the limit, Bloomage Biotechnology Corporation Limited(688363) rose by 8.18%.
Household appliances sector rose significantly. On December 6, the official website of the people’s Bank of China announced that the reserve requirement ratio would be lowered by 0.5 percentage points on December 15, 2021. In addition, at yesterday’s Politburo meeting, it was stressed that “stability is at the forefront and progress is made in stability”, highlighting the intention of the current policy to stabilize growth. The overall pressure on the real estate side slowed down, including the loosening of the real estate financing side. Under this background, the household appliance sector, which is greatly affected by the real estate, rebounded. At the same time, according to the recent public data, the domestic sales of household air conditioners in October increased by 1.3% year-on-year, while the domestic sales of refrigerators and washing machines in October increased by 3.1% and 6.3% month on month respectively, showing a warming trend as a whole. In terms of individual stocks, Zhejiang Hongchang Electrical Technology Co.Ltd(301008) rose by the limit, Zhejiang Entive Smart Kitchen Appliance Co.Ltd(300911) , Sichuan Jiuzhou Electronic Co.Ltd(000801) rose by 11.44% and 7.67% respectively. Brokerage sector recently increased considerably, on the one hand, from the year-end fund’s overall risk appetite decline, the flow tends to have the direction of performance support and reasonable valuation, so the Baijiu and brokerage board with good performance and relatively low valuation are ushered in a rebound. On the other hand, the recent RRR reduction constitutes a certain policy support for finance, real estate and other industries. In terms of individual stocks, Chinalin Securities Co.Ltd(002945) rose by the limit, Zheshang Securities Co.Ltd(601878) rose by 8.52%, and Caida Securities Co.Ltd(600906) rose by 5.52%.
Outlook
Today, the single inflow of funds from the North exceeded 20 billion yuan, the largest single day net inflow in history. In addition to China’s prudent monetary policy and high-quality assets, the large net inflow of foreign capital is also related to a recent Goldman Sachs report. Goldman Sachs said that Chinese companies are not “non investable” and issued an overall promising outlook. It is expected that the offshore Chinese stock market and A-Shares will achieve 16% and 13% investment returns in 2022. In the future, under the background of large net inflow of overseas funds, stable monetary policy and “stable growth” of the economy, it is expected that the A-share market is expected to interpret the “cross year” market, and pay attention to the direction of power infrastructure related to “stable growth” and the direction related to post epidemic recovery, such as accommodation, tourism, aviation, catering, etc.
Risk warning: the enterprise’s profit is less than expected; Increased volatility in overseas markets; Systemic risk.
