Strategy tracking: the index opened higher and fell, and the low plate strengthened

Index tracking

[Shanghai and Shenzhen composite index] Shanghai Composite Index fell 0.50% to close at 3589.31 points; The Shenzhen Component Index fell 0.93% to close at 14752.96 points; The gem index fell 2.09% to close at 3405.93.

[industry tracking] industry: 7 industries rose and 21 industries fell. Among them, leisure services, building materials and household appliances led the increase, with an increase of 2.02%, 1.37% and 1.15% respectively; Electrical equipment, agriculture, forestry, animal husbandry and fishery and comprehensive sectors led the decline, with declines of – 2.09%, – 1.87% and – 1.86% respectively.

Industry comments

There are two main reasons for the largest decline in the electrical equipment sector. On the one hand, in terms of the overall valuation of the industry, the new energy sector has benefited from the promotion of policies and the improvement of industry prosperity since this year. It increased significantly last year, and the current industry valuation is at an all-time high; On the other hand, in our recent report, we also mentioned that we should be vigilant against the risk transmission of overseas market decline to China’s relevant industrial chains. Last Friday, affected by didi incident, overseas Chinese concept stocks fell significantly, among which ideal cars, Weilai and Xiaopeng cars among new energy vehicles fell by 15.95%, 11.19% and 9.30% respectively; The photovoltaic related Jingke energy and Daquan new energy also fell by more than 10% one after another. The sharp drop in the concept shares of overseas new energy has suppressed the overall valuation of A-share new energy to a certain extent.

The non bank sector rose significantly, led by the securities sector. On December 3, Premier Li Keqiang said that he would continue to implement a prudent monetary policy, maintain reasonable and sufficient liquidity, formulate policies around the needs of market players, reduce reserve requirements in due time, and increase support for the real economy, especially small, medium and micro enterprises. The “RRR reduction” is expected to strengthen the securities sector, but the drag of overseas markets, including Hang Seng Index and Hang Seng technology index, also fell sharply throughout the day, and the securities sector also fell in the afternoon. In the long run, we believe that at the current time node, the overall valuation of securities companies is relatively reasonable and has a certain margin of safety. In terms of individual stocks, China Industrial Securities Co.Ltd(601377) , Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) rose 6.59%, 4.56% and 2.98% respectively.

In terms of concept plate, photovoltaic glass plate increased greatly. On the one hand, the recent policies have released some positive signals for the real estate end, and the market has certain expectations for the short-term recovery of the real estate. Therefore, the real estate industry chain has rebounded slightly recently, and the deregulation of the real estate end has formed a certain support for the demand for glass end; On the other hand, although the price of silicon material has declined recently, the industry itself has a good prosperity and strong demand. In terms of individual stocks, Luoyang Glass Company Limited(600876) limit, Flat Glass Group Co.Ltd(601865) , Changzhou Almaden Co.Ltd(002623) rose 6.07% and 5.53% respectively.

Outlook

Recently, the European and American stock markets, including Hong Kong stock markets, have fallen sharply, mainly due to concerns about the early expectation of interest rate hikes and the further spread of the epidemic. In China, the epidemic situation is well controlled, the industrial chain is resilient, and the monetary policy is relatively stable, including the net inflow of northbound funds, so there is no need to worry too much about the A-share market. In terms of A-share market, the current phenomenon of “28 February differentiation” is still obvious. It is suggested that there should be more directions with small early increase, low valuation and national strategic support.

 

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