Core view
Last week, the market index fluctuated and differentiated, and the mass entrepreneurship and innovation sector performed well. The average daily turnover of the two cities increased by 6.18% month on month. Although the volume has shrunk slightly in the last four trading days, the turnover still maintains the scale of trillion. The supporting index with capacity continues to decline in the future, and the kinetic energy is insufficient.
Northbound capital continued to net inflow, with a cumulative net purchase of nearly 20 billion yuan this month. Foreign capital has recently actively investigated China’s science and technology growth stocks, superimposed on the “tail raising market” of funds going north over the years, and is expected to continue to maintain net inflow in the future. The willingness to participate in leveraged funds has rebounded significantly, the cumulative financing purchase amount this week has increased significantly month on month, reaching a new high in two months, and the net financing purchase amount of electrical equipment sector has reached more than 7 billion; Last week, the scale of new equity funds increased significantly month on month. Under the trend of residents’ wealth gradually transferring to the securities market, the issuance scale of future equity funds is expected to continue to increase driven by the positive layout of the cross-year market by institutional investors.
Under the influence of the mutant virus last Friday, the peripheral stock markets fell one after another, which may disturb China’s index to a certain extent in the short term. However, based on China’s epidemic prevention and control system and the relatively independent characteristics of A-Shares relative to the peripheral market, It is suggested that investors continue to pay attention to the medium and long-term investment opportunities in the high boom and high-end manufacturing direction represented by new energy / semiconductors, as well as the leading consumer companies with high expected performance and low valuation in the annual report.
Market fund status
(i) The main indexes show differentiation, short-term style and fast rotation
last week (November 22-november 28) the main indexes of the market showed differentiation, the performance of the mass entrepreneurship and innovation sector was bright, and the short-term style took a rapid turn. The gem 50 and the science and innovation 50 index rose by 1.92% and 1.05% respectively, significantly ahead of the Shanghai Composite Index and the Shenzhen composite index; the non-ferrous metals, steel, food and beverage industry led the rise; the leisure services, agriculture, paper, animal husbandry and fishery industry led the decline; the growth, consumption and cycle style were all stable It rose slightly and finance fell sharply, mainly due to the large decline of bank stocks and the rise and fall of securities companies.
（2） Market transaction analysis: the average daily turnover of A-Shares increased slightly month on month last week
Last week (November 22-november 28), the average daily turnover of Shanghai Stock Exchange, Shenzhen Stock Exchange and gem increased by 9.14%, 4.60% and 10.18% month on month respectively. Although the volume has shrunk slightly in the last four trading days, the turnover still maintains the scale of trillion, and the supporting indexes with capacity continue to fall in the follow-up, which is insufficient.
Secondary market liquidity
(i) Northbound capital monitoring: continued net inflow of northbound capital
Last week (November 22-november 28), the net inflow of funds going north was 5.71 billion yuan, which was a net inflow for two consecutive weeks, and the cumulative net purchase this month was nearly 20 billion yuan; the funds going north have always had a “tail raising market” , with the addition of a large number of recent foreign investment research on China’s science and technology growth stocks, northbound funds are expected to continue to maintain a net inflow, and investors are advised to pay close attention; The trading structure has obvious preference, and the net purchase is basically concentrated in Shenzhen Stock connect; In the context of the rapid rotation of the market style, we went north to increase the position of funds in electronics, non-ferrous metals, electrical equipment and food and beverage sectors, and reduce the holdings of banks, automobiles, steel and mining sectors.
（2） Fund scale monitoring: the scale of new equity funds increased significantly month on month last week
Since July, the number and share of new development funds have shown a downward trend, but the scale of new development funds increased significantly month on month last week. Under the general trend of gradual transfer of residents’ wealth to the securities market, the issuance scale of future equity funds is expected to continue to increase driven by the positive layout of cross-year behavior by institutional investors. Last week, there were 39 new funds, accounting for 62% of the issuance this month, including 25 new stocks and hybrid funds, accounting for more than 50%.
（3） Margin trading monitoring: the willingness of leveraged funds to participate has rebounded significantly
Last week, the total purchase amount of financing was 450.115 billion yuan, an increase of 12.68% month on month, a new high in two months; The trading volume of the two financial institutions accounted for 8.01% of the trading volume of a shares, an increase of 5.4% month on month; The difference between the two financial institutions was 427.677 billion yuan, an increase of 13.36% month on month.
In terms of sub sectors, the net financing purchases of electrical equipment, electronics, automobile and national defense industry ranked first, with 7.3 billion, 5.9 billion, 3.1 billion and 2.8 billion respectively; The non bank financial sector sold a net 5.8 billion securities lending.
Primary market liquidity
According to the listing date, there were 8 IPOs last week, raising 8.040 billion yuan, down nearly 50% month on month; Among the new shares listed this week (November 29 – December 5), Baiji Shenzhou raised 20.5 billion yuan to change the industrial capital
(i) Lifting of restricted shares: the number and scale of companies lifted this week decreased slightly
In terms of the scale of lifting the ban, 37 companies lifted the ban on restricted shares this week (November 29 – December 5), with the scale of lifting the ban of 54.5 billion yuan, a slight decrease month on month.
（2） Increase or decrease in the secondary market: the reduction in the market value of food and beverage, chemical and electronic sectors ranks first
Last week, the event level market announced a total net reduction of 22 billion yuan, and the market value of reduction in food and beverage, chemical and electronic industries was at the forefront. In terms of individual stocks, Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) has a high market value of 5.382 billion yuan. Macro liquidity
Last week, the central bank net invested 190 billion yuan in the open market. This week, 400 billion reverse repo and 200 billion MLF expired. The overall scale is small and has little impact on the short-term capital liquidity of the market.
Risk tip: investment is risky, so be cautious when entering the market
