Macro Liquidity: 1 Last week, the net return of reverse repo was 430 billion, and MLF did not operate; 2. In terms of market interest rate, dr007 and R007 decreased to 2.04% and 2.05% respectively; 3. The yield of 10-year Treasury bonds rose slightly to 2.83%; 4. The US dollar against RMB remained at 6.33; 5. The expected rate of return of financial products (three months) is maintained at 1.92%.
Capital and sentiment of A-share market: 1 Last week, the turnover and turnover of A-Shares decreased significantly; 2. The balance of the two financial institutions remained at 1.72 trillion; 3. The net inflow of funds from Beishang is 4.27 billion yuan; 4. Last week, the scale of A-share slight net reduction and repurchase increased, and the scale of sales restriction and lifting this week increased; 5. In terms of style, small cap stocks, low PE stocks, low-cost stocks and loss making stocks performed best last week.
A-share and global Valuation: from the perspective of pb-roe, the industries whose valuation level is far lower than the profitability are banking, steel, building decoration, mining, non bank finance, building materials, real estate, transportation, household appliances and light industry manufacturing.
