Core view
Last week, under the influence of capital and sentiment, the A-share market showed a shock correction trend as a whole, the market risk appetite decreased, and the consumption style led the rise of the two markets. The overseas epidemic continued to spread, superimposed on the recent crackdown on "fake foreign capital", and the overall inflow trend of funds going north slowed down. The trading heat of leveraged funds decreased, the net outflow of financing funds for the first time in nearly two months, and the market risk appetite decreased. In December, the public fund issuance market continued to pick up. After the short-term disturbance, the incremental funds of A-Shares are expected to return to abundance.
On December 25, the fourth quarter regular meeting of the central bank required monetary policy to be more "active and promising", emphasizing the urgency of stabilizing growth, stabilizing investment and promoting consumption as the main starting point to boost the economy, superimposing the expectation of further easing liquidity, which is expected to continue to become the main line of the market in the future: 1) focus on strong performance certainty Leading companies with strong pricing power in food and beverage that take the lead in benefiting from ppi-cpi transmission. 2) Under the expectation of steady growth, the new infrastructure may be stronger than expected, and the business continuity is expected to be maintained. Focus on segments with strong policy support and reasonable valuation.
Market fund status
(i) Index price: major index shock correction, Consumption style led the rise of the two cities last week (December 20-december 26) the A-share market as a whole showed a shock correction trend, with obvious high-low switching characteristics. The Shanghai 50 index rose slightly by 0.35%, led by the gem index and the Kechuang 50 index. The A-share style index: stocks with high P / E ratio led the decline; the downstream index performed well; the consumption style rose against the trend. Sub industries: agriculture, forestry, animal husbandry and fishery, food and beverage, and building materials Rise; Power equipment, non-ferrous metals and steel led the decline.
（2） Capital flow: the turnover of the two cities decreased slightly, and the capital flowed out of the high-level plate
Last week (December 20-december 26), the average daily turnover of Shanghai Stock Exchange, Shenzhen Stock Exchange and gem decreased by 8.87%, 5.09% and 12.13% month on month respectively. The main funds flowed out of high-level sectors such as electrical equipment, non-ferrous metals and chemical industry.
Secondary market liquidity
(i) Northbound capital monitoring: the trend of northbound capital inflow slows down
Last week (December 20-december 26), the average daily net outflow of funds going north was 305 million yuan, which slowed down compared with the average inflow of 2.3 billion yuan the previous Sunday.
Northbound funds last week net outflow of the recent rise in the food and beverage sector, net inflow of short-term due to the impact of sentiment correction of the high boom sector.
（2） Fund scale monitoring: the issuance of public funds continued to pick up
Since December, 202.2 billion shares of newly issued stocks and hybrid funds have been issued, a significant increase month on month. With the continuous convening of important meetings at the end of the year, the policy expectation of stable growth and wide credit has gradually become the consensus of the market, and the public fund issuance market is expected to continue to pick up.
（3） Margin trading monitoring: the trading heat of leveraged funds decreased
Last week, the financing purchase amount was 383.1 billion yuan, a month on month decrease of 9.95%, and the financing net sales was 11.1 billion yuan; The two financial transactions accounted for 7.47%, and the transaction heat further decreased.
Primary market liquidity
In December, 37 IPOs raised 75.8 billion yuan; 52 additional shares were issued, with a fund-raising scale of 101.5 billion, and the overall fund-raising scale maintained a normal level.
Industrial capital change
(i) Lifting the ban on restricted shares: the scale of lifting the ban increased significantly this week, and the follow-up returned to normal
This week, 87 stocks were lifted, and the scale of lifting the ban is expected to be 100.5 billion yuan. The scale of lifting the ban in the short term has increased significantly, and the follow-up will return to normal. Wuxi Shangji Automation Co.Ltd(603185) the lifting of the ban has the largest market value, up to 26.6 billion yuan.
（2） Increase or decrease in secondary market: the market value of reduction in electronics, chemical industry and real estate sectors ranks first
Last week (December 20-december 26), the secondary market announced a total net reduction of RMB 21.9 billion; in terms of industry, the market value of reduction in electronics, chemical industry and real estate industry was at the forefront.
Macro liquidity
The monetary policy committee of the central bank held its regular meeting in the fourth quarter of 2021, pointing out that "stability comes first and progress is sought in stability", and strengthening the combination of cross cyclical regulation and counter cyclical regulation. In December, the 1-year LPR was reported at 3.8%, down 5 basis points from the previous period, while the varieties over 5 years were flat at 4.65%.
Last week, the central bank net invested 50 billion yuan in the open market. The weighted interest rate of pledge repo of 7-day deposit institutions was 1.8992%, and the weighted interest rate of 7-day inter-bank pledge repo was 2.0732%, a change of -21.51bp and -22.32bp compared with the previous week. The yield of one-year treasury bonds and the interest rate of 10-year Treasury bonds were 2.3386% and 2.8203%, with changes of + 1.8 BP and - 3.1 BP compared with the previous week. The term spread (10y-1y) was 48.17bp, narrowed by 4.9bp compared with the previous week.
Risk tip: investment is risky, so be cautious when entering the market
