A shares continued to fall at the opening on Wednesday. After accelerating the decline in the afternoon, they staged a “V” shaped rebound, and the Shanghai Composite Index rose more than 140 points. As of the close, the Shanghai Composite Index fell 1.13% and the gem index fell 0.63%. Shanghai and Shenzhen markets traded 1.16 trillion yuan throughout the day, an increase of 51.8 billion yuan month on month. At the time of the freezing point of market sentiment, the willingness of funds to copy the bottom is becoming stronger, and A-share intraday ushered in a strong reversal, which effectively boosted market confidence, and the future market is expected to usher in the valuation repair market.
Recently, external factors have disturbed short-term market sentiment, and A-Shares have been continuously adjusted. With the downward trend of the market center, the long short game is more sufficient, the “cost performance” of A-Shares is gradually recognized by funds, and the willingness to copy the bottom is becoming stronger and stronger.
Xiangcai Securities pointed out that although the fundamentals of the stock market fluctuated in the short term, the medium and long-term upward trend remained unchanged. After this round of decline, the sectors and individual stocks that return to a reasonable valuation range will regain long-term investment value, and the market will usher in a new round of price fluctuation cycle around value.
Fundamentals are the core that determines the medium and long-term trend of stocks.
Statistics show that at present, 2570 A-share companies have issued annual report performance forecasts for 2021, of which 1490 are expected to be happy, accounting for 58%. In addition, Kweichow Moutai Co.Ltd(600519) , Semiconductor Manufacturing International Corporation(688981) and other industry leading enterprises released their business data from January to February.
Taking Semiconductor Manufacturing International Corporation(688981) as an example, the company expects to achieve an operating revenue of about US $1223 million in the first two months of this year, with a year-on-year increase of 59.1%; The net profit was about US $309 million, a year-on-year increase of 94.9%. In the traditional off-season, the company’s performance has achieved such high growth, which reflects the high outlook of China’s manufacturing industry and the resilience of industry leading enterprises.
Sinolink Securities Co.Ltd(600109) the latest released stock position calculation report of public funds shows that the overall positions of 66 fund companies have increased to varying degrees in the past quarter, indicating the optimism of institutions towards the market.
Boshi Fund said that although the current external uncertainties still exist, the foundation for the medium and long-term improvement of the A-share market still exists, and it can still have confidence in its future performance. There are still structural opportunities in the market, and the industry sectors benefiting from policy support will have a good performance.
Looking forward to the follow-up trend of a shares, China International Capital Corporation Limited(601995) chief strategist Wang Hanfeng believes that China is an important manufacturing country in the world and has the world’s largest and relatively complete industrial chain. As long as the trend of scientific and technological innovation and industrial upgrading remains unchanged, China’s economy will be relatively more resilient.
Wang Hanfeng judged that although the global market may still fluctuate in the future, the future policy space of the Chinese market is relatively sufficient. The gradual improvement of China’s economic fundamentals under the comprehensive steady growth policy is still a probability event. In the medium term, China’s capital market is expected to show resilience.
related reading:
A-share yesterday’s “deep V miracle” today’s “rising voice”! The A-share tap competes to protect the market. Can you copy the bottom? (list attached)
