Market review: the two cities pulled up in the afternoon, and the home appliance sector led the rise again
Today, the two cities rose in the afternoon. As of the close, the Shanghai index rose 0.39% to 3630.11 and the Shenzhen index rose 0.83% to 14837.87. In terms of sectors, household appliances, non-ferrous metals and power equipment led the increase, while utilities, building decoration and building materials led the decline. The turnover of the two cities was 1002.64 billion yuan, an increase of 2.86% over the previous trading day and a contraction of 4.45% over the average of the previous five days. The net purchase of Shanghai Stock connect was 1 billion yuan, the net purchase of Shenzhen Stock connect was 293 million yuan, and the net purchase of northbound funds throughout the day was 1.293 billion yuan.
Market focus:
According to the website of the people’s Bank of China, the working conference of the people’s Bank of China in 2022 was held by video on the morning of December 27. The meeting proposed to comprehensively use a variety of monetary policy tools, maintain reasonable and sufficient liquidity, enhance the stability of total credit growth, and increase support for the real economy. Strengthen the supervision of capital and platform enterprises according to law, and continue to do a good job in the rectification of online financial platforms. We will promote the introduction of measures for the supervision of financial infrastructure.
Strategy suggestion: focus on the financial sector
In early trading today, it showed a narrow shock trend. In the afternoon, it made efforts to pull up. The market turnover still did not see significant growth, and there was a slight net inflow of funds to the north. At the macro-economic level, the central bank’s recent expression of monetary policy in 2022 is partial to positive. While emphasizing the basic matching between the stable growth of total credit and the growth of social financing scale, the references such as “strengthening cross cycle regulation” and “being more active and promising” have released positive easing signals. We believe that the RRR reduction can be expected again in the first quarter of 2022, The probability of structural interest rate reduction has also increased. It is suggested to pay attention to the investment opportunities in the field of durable goods consumption that are expected to benefit from it, as well as the opportunities in the financial sector that is expected to reduce costs and improve efficiency under the background of the real economy benefiting from the structural monetary policy. At the same time, the new negative list of foreign investment access was released recently, and the access restrictions were further relaxed. The negative lists of the country and the pilot free trade zone were reduced by 6.1% and 10% respectively. The negative list of foreign capital access is a successful product of China’s Shanghai free trade zone’s breakthrough in institutional innovation, deepening institutional reform, and then promoting it to the whole country. Its core idea is to optimize China’s investment environment and connect with the institutional rules of the international market. In recent years, the continuous “simplification” of the negative list also highlights that China’s reform and opening up has gradually penetrated into the stage of institutional opening up. On the whole, adjusting the economic structure is the core meaning of China’s medium and long-term development of the national economy at the present stage. While anticipating and judging the macro policies, we must bear in mind the profound meaning of this. Under the guidance of “common prosperity” and “high-quality development”, some traditional industry models are “on the line”, “danger” and “opportunity” coexist. In this process, Profit adjustment and fundamental changes may make the A-share market continue to interpret the structural market. It is suggested to grasp the core idea of economic structure adjustment and tap the opportunities with high certainty and high prospect.
In terms of sectors, the household appliance sector continues to be strong today. We continue to emphasize the better allocation opportunities of this sector under the background of “expanding domestic demand” and low water level.
