At the beginning of 2021, small and medium cap stocks were still “seeking attention”. By the end of the year, small ticket holders had “doubled the market” in batches, which can be described as “small ticket holders”.
Looking forward to 2022, some institutions believe that the “road map” of growth stocks in the A-share market has become clearer. “Specialized and new” enterprises are expected to become the main line of the annual market, and can focus on high-end manufacturing industry chain companies with high prosperity, high growth, large market space and breakthrough in product technology.
growth stock market returns to view
In the past few years, the “leading stock” strategy is a stable and effective way to make money. Many investors believe that buying “leading stocks” can be done once and for all. As a result, the larger the stock market value, the better, and the situation that small market value stocks are almost ignored has gradually taken shape.
However, this situation will reverse in 2021. Some large capitalization white horse stocks fell into shock consolidation, and the funds released created liquidity conditions for the market of small and medium-sized stocks. The grand background of the energy revolution provided growth logic for small and medium-sized stocks.
According to the data, excluding the new shares listed in 2021, as of December 26, a total of 304 shares in Shanghai and Shenzhen stock markets increased by more than 100% in 2021. Among them, 235 stocks had a market value of less than 10 billion yuan at the beginning of the year.
China Securities Journal reporter found that most of the above small market value “bull stocks” have the label of “new energy”. From 2014 to 2015, the Internet plus gave birth to a wave of growth stocks. By 2021, A-Shares will play a growth story of “new energy +”.
“This is a revaluation of the value brought by the industrialization of new energy.” Zheshang Securities Co.Ltd(601878) strategic analyst Wang Yang said that “new energy +” is an inevitable stage after the industrialization of new energy is relatively mature, marking the transition of the new energy industry from the middle stage of growth to the early stage of maturity. The energy revolution promotes the penetration of the new energy industry from a single branch to various industries.
Polyvinylidene fluoride (PVDF), organic silicon, fluorine chemical industry, phosphorus chemical industry, lithium extraction from Salt Lake, sodium ion battery, hydrogen energy, energy storage, offshore wind power and other track investment hotspots frequently appear, which explains the growth story of A-Shares in 2021 from another perspective.
Looking back on the A-share market in 2021, the most unforgettable thing is all kinds of “small and beautiful” new energy stocks.
the “road map” is clearer
The A-share market often has the phenomenon of large and small stock rotation. From 2009 to 2015, A-Shares showed an obvious small cap stock market. From 2017 to 2020, with the continuous inflow of long-term funds and dominated by institutional investors, large blue chips with high performance certainty continued to outperform small cap stocks.
So, how will the growth stock market opened in 2021 be interpreted in the future?
Market participants believe that after the establishment of the Beijing stock exchange, the “road map” of growth stocks in the A-share market has become clearer. The Beijing stock exchange, which focuses on the “little giant” specializing in special innovation, has its own characteristics in the science and innovation board positioned as “hard technology” and the gem aiming at “three innovations and four innovations”. With the continuous release of institutional dividends, growing enterprises have ushered in new opportunities.
“With the simultaneous development of endogenous and extension, the performance of small and medium-sized enterprises shows an upward inflection point, which will usher in a new round of investment opportunities.” Ren Lang, a small and medium cap strategy research analyst at open source securities, said that the performance of small and medium-sized enterprises began to pick up in the second quarter of 2020. Driven by the establishment of the Beijing stock exchange and the energy revolution, the endogenous growth power of small and medium-sized enterprises is full.
Looking forward to 2022, some institutions believe that the market environment is conducive to growth stocks. Wang Yang said that in the next two to three quarters, the liquidity environment is expected to improve significantly, and the market style will favor small and medium-sized growth stocks.
Wang Jun, chief strategist of Boc International (China) Co.Ltd(601696) believes that with the gradual development of cross cycle adjustment policies, domestic demand will be strongly supported, and the A-share market will be in a liquidity environment of internal loosening and external tightening in 2022. This environment is a favorable condition for the strength of growth stocks.
“specialization and innovation” into a grasp
What is the focus of A-share investment in 2022? Many institutions are looking at “specialized and new” enterprises. Market participants believe that during the “14th five year plan” period, small and medium-sized enterprises, especially “specialized and new” enterprises, will usher in a period of development opportunities.
“In the key areas of reinforcing the chain pointed by the policy, we can grasp the investment opportunities of ‘specialized and special new’ enterprises from top to bottom.” Wu Kaida, a strategic analyst at deppon securities, said that it focuses on the high-end manufacturing industry chain and looks for “single champion” enterprises that master core resources, establish competitive advantages and have good performance expectations in the future.
Sinolink Securities Co.Ltd(600109) proposed to grasp the opportunities of growth stocks from the perspective of industrial chain. First, the new energy industry chain. Under the “double carbon” policy goal, the energy transformation will continue to accelerate, and the high growth certainty of wind, solar and other renewable energy industry chain companies is high. The second is the electric and intelligent vehicle industry chain. The penetration rate of new energy vehicles will continue to increase, and the demand for replenishment will support the landscape of relevant industrial chains. Third, intelligent manufacturing industry chain. With high-quality development, the upgrading of manufacturing industry will continue to accelerate, and intelligent manufacturing is the most clear direction. Fourth, innovative drug industry chain.
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(China Securities Journal)
