Double financing balance
As of December 24, the balance of the two financial institutions of the Shanghai Stock Exchange was reported as 981.232 billion yuan, a decrease of 5.641 billion yuan compared with the previous trading day; The two financial balances of Shenzhen Stock Exchange reported 850.765 billion yuan, a decrease of 3.942 billion yuan compared with the previous trading day; The two cities totaled 1831.997 billion yuan, a decrease of 9.583 billion yuan over the previous trading day.
Latest views
Last Friday, the stock indexes of the two cities of A-Shares fluctuated and corrected. As of the close, the Shanghai stock index fell 0.69%, the Shenzhen Component Index fell 1.03%, the gem index fell 2.27%, the Shanghai and Shenzhen 300 fell 0.55%, the Shanghai Stock Exchange 50 rose 0.09% and the China Stock Exchange 500 fell 0.80%. The number of gainers in the two cities was 1024, lower than the average value of 2224 last week and lower than 1496 on the previous trading day. The limit was 58, lower than the average value of 95 last week and 76 the previous trading day. The turnover of the two cities was 1132.8 billion yuan, breaking trillion yuan for the 45th consecutive trading day. The broad adjustment of A-Shares is basically in line with our expectations. Last week, due to the continuous contraction of volume and energy, we believe that the market may bottom again, and the sharp decline in the market last Friday verified our judgment. At present, due to the rapid decline last Friday, there is still room for inertia to continue to explore. From the perspective of style, due to the full valuation expectation of growth stocks, in the state of low risk preference, the decline of growth stock valuation will become the norm, while undervalued and stable performance blue chips will be sought after by the market. The fourth quarter monetary policy regular meeting of the central bank this weekend has changed the expression of the internal and external environment faced by the current economic development compared with the third quarter regular meeting. The expression of the external environment adds “uncertainty” while “complex and severe”, and the expression of China’s economic development is “facing the triple pressure of demand contraction, supply shock and weakening expectation”. In terms of policy response, from “doing a good job in cross cycle policy design” to “strengthening cross cycle adjustment, combined with counter cycle adjustment”. In 2022, the new special debt limit will be issued 1.46 trillion yuan in advance, a new round of infrastructure investment will heat up, and new infrastructure construction will become the focus of next year, which is also worthy of investors’ cross cycle layout.
Topic tracking
Today’s focus: Traditional Chinese medicine, diamond cultivation, NFT concept
1. Theme of traditional Chinese medicine: on the morning of December 19, 2021, “the first member congress and the first Council of the working committee of traditional Chinese Medicine Inheritance of China National Health Association” was held in Beijing to help promote the inheritance and innovation of traditional Chinese medicine and the revitalization and development of national health. Since this year, the favorable policies of traditional Chinese medicine have occurred frequently. Inheritance, innovation and coordinated development of traditional Chinese and Western medicine have become national strategies. At present, the performance of traditional Chinese medicine enterprises has ushered in marginal improvement, and the industry is expected to usher in greater development in the future. Suggestions: Gansu Longshenrongfa Pharmaceutical Industry Co.Ltd(300534) (300534), Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) (300026)
2. Cultivating diamond theme: cultivating diamond refers to the crystal that is completely the same as the appearance, chemical composition and crystal structure of natural diamond manufactured in the laboratory or factory through certain technology and process flow. In the 21st century, diamond cultivation has made technological breakthroughs, improved production technology and shortened cultivation time, providing a basis for the supply of fashion consumer market, and gradually becoming one of the emerging choices in the field of diamond consumption. At the same time, under the new consumption trend, consumers’ acceptance of diamond cultivation will continue to improve in the future, and the industry has huge growth space in the future. Suggestions: Henan Huanghe Whirlwind Co.Ltd(600172) (600172), Henan Liliang Diamond Co.Ltd(301071) (301071)
3. NFT concept: since this year, NFT’s international market has been active, and its sales increased to US $2.5 billion in the first half of the year. Non-homogeneous token (NFT) is an encrypted digital proof of interest based on blockchain technology that cannot be copied, tampered with or divided. NFT relies on blockchain technology to ensure the uniqueness, authenticity and permanence of digital assets, enhance their liquidity, effectively solve the problem of ownership confirmation of online assets and solve the pain points of copyright protection. NFT application scenarios focus on three areas: digital collections, game assets and metaverse. The recent popularity of the concept of meta universe also has a certain catalytic effect on it. It is suggested to pay attention to: Zhejiang Huamei Holding Co.Ltd(000607) (000607), Xiamen Anne Co.Ltd(002235) (002235).
Risk statement
The epidemic has not been effectively controlled, the macro economy has unexpectedly declined, the liquidity crunch has intensified, and the industrial policies are lower than expected.
