Market review: the Shanghai and Shenzhen index rose sharply in the afternoon and the capital flowed back to the north
The two cities rose in the afternoon today. As of the close, the Shanghai index rose 0.57% to 3643.34 and the Shenzhen index rose 0.49% to 14863.93. In terms of sectors, public utilities, agriculture, forestry, animal husbandry and fishery, food and beverage led the increase, while comprehensive, social services and real estate led the decline. The turnover of the two cities was 1077.28 billion yuan, an increase of 1.39% over the previous trading day and a contraction of 1.96% over the average of the previous five days. The net purchase of Shanghai Stock connect was 3.045 billion yuan, the net sales of Shenzhen Stock connect was 553 million yuan, and the actual net purchase of northbound funds was 2.492 billion yuan.
Market focus:
On December 23, China Rare Earth Group Co., Ltd. was established in Ganzhou, Jiangxi Province. China Rare Earth Group Co., Ltd. is established by Aluminum Corporation Of China Limited(601600) Group Co., Ltd., China Minmetals Group Co., Ltd. and Ganzhou rare earth group Co., Ltd. in order to realize the complementary advantages of rare earth resources and the coordinated development of rare earth industry, China Steel Research Technology Group Co., Ltd. and Youyan Technology Group Co., Ltd. are introduced into two rare earth science and technology R & D enterprises. It is based on market-oriented Large rare earth enterprise group established according to the rule of law. After its establishment, China Rare Earth Group Co., Ltd. is a diversified central enterprise under the direct supervision of the SASAC of the State Council.
Strategy suggestion: focus on the required consumption
Today, the Shanghai index fluctuated in a narrow range in the morning and rose sharply in the afternoon. The Shenzhen index maintained a high shock all day and also rose again in the afternoon. The market turnover still contracted significantly compared with the beginning of this month. Recently, the performance was relatively low. The northward capital ended its net outflow for four days and returned today. We believe that A-Shares may still maintain a volatile trend in the short term, and the fermentation of easing policy signals has basically come to an end. Under the background of economic downturn and lower profit expectations, the kinetic energy to reproduce the sharp rise is slightly insufficient. Meanwhile, the epidemic situation in Shaanxi has continued to ferment recently. From 0:00 on December 22 to 8:00 on December 23, 86 confirmed cases of local covid-19 pneumonia were newly reported (84 in Xi’an, 1 in Xianyang and 1 in Yan’an). Since December 9, 235 locally confirmed cases have been reported in the province (227 cases in Xi’an, 4 cases in Yan’an and 4 cases in Xianyang). The situation is not optimistic. The superposition is close to the peak of population flow in the Spring Festival, which may further tighten the local and even national epidemic prevention and traffic restriction measures, which will once again have an impact on catering services, leisure and entertainment, passenger transport and other industries. It is suggested to reasonably avoid the targets of relevant sectors.
In terms of sectors, today’s power stocks collectively rose, generally recovering the land lost yesterday, and wind power, thermal power and nuclear power all performed strongly. At present, technological development has driven the cost reduction of wind power motors and boosted by the “energy transformation” policy. We predict that the installed capacity of wind power is expected to expand further in 2022, and the industry may usher in a high business cycle. It is suggested to pay attention to the leading targets with obvious technological advantages. In addition, the integration of China’s rare earth industry has accelerated. The establishment of China Rare Earth Group Co., Ltd. may promote the formation of a north-south duopoly in the rare earth industry. Under the development direction of new energy and high-efficiency motors, rare earth permanent magnet materials have high prosperity support. It is suggested to pay attention to the leading targets with strong core technology and profit certainty.
