With the renewed outbreak of photovoltaic, lithium and other new energy sectors, A-Shares strengthened as a whole on the last trading day of 2021, marking a perfect end to the whole year.
Looking back on 2021, although problems such as corporate profit differentiation and global supply chain tension caused by covid-19 epidemic still exist, the A-share market has withstood the test, and the annual turnover and northward capital inflow scale have reached a record high.
As of the closing on December 31, most of the annual lines of the main A-share indexes were red. The Shanghai Composite Index closed at 3639.78 points, up 4.80% for the whole year; Shenzhen composite index reported 14857.35 points, up 2.67% for the whole year; The gem index reported 3322.67 points, up 12.02% for the whole year; The Kechuang 50 index reported 1398.19 points, up 0.37% for the whole year.
the Shanghai index reappeared the annual line three times after 28 years
In 2021, the annual growth rate of Shanghai stock index was fixed at 4.80%, and the annual line has been positive for three consecutive years since 2019. This broke the dust laden 28 year record of the A-share market. The last time the Shanghai stock index had an annual line of three consecutive positive dates back to 1993.
The A-share market is often criticized as “short bull and long bear”. Open the K-line chart of Shanghai stock index, “bull only three years” seems to be the norm, and each sharp rise is often followed by a sharp fall. The repeated “roller coaster” market has caused poor shareholding experience of investors, and also affected the financing function of the capital market to a certain extent.
With the “long bull” and “slow bull” market slowly unfolding, investors’ stereotype of A-Shares has been gradually broken.
Citic Securities Company Limited(600030) said that with the promotion of China’s comprehensive registration system reform, the A-share market is expected to accelerate the renewal of industrial structure, so as to build a bull foundation for the stock market. Taking the full implementation of the registration system as an opportunity, the A-share market is expected to usher in three “rebalancing” of new share supply and demand, market style and listing and delisting.
market turnover hit a record high
In the last week of 2021, the annual turnover of A-share market reached a new record. As of the closing on December 31, the annual turnover of Shanghai and Shenzhen stock markets was 256.22 trillion yuan. Previously, the highest annual turnover of A-Shares in history appeared in 2015, with an annual turnover of 254.50 trillion yuan.
In terms of average daily turnover, the average daily turnover of Shanghai and Shenzhen stock markets in 2021 was 1054.4 billion yuan, which also exceeded the daily average of 1043 billion yuan in 2015, setting a new record.
For the rising turnover of A-Shares this year, many institutions believe that trillion transactions may become the new normal of the market.
China International Capital Corporation Limited(601995) said that with the appreciation of the stock market itself and the expansion of the number of listed companies and share capital driven by IPO and refinancing in recent years, the free circulation market value of A-Shares has also increased year by year, exceeding 40 trillion yuan. Historically, the turnover rate corresponding to the free circulation market value of A-Shares has the characteristics of mean regression. The theoretical turnover calculated by the mean historical turnover rate of 2.57% has exceeded 1 trillion yuan. China International Capital Corporation Limited(601995) it is estimated that trillion transactions may be the new equilibrium level of daily turnover of a shares.
the net purchase amount of northbound funds reached a record
In 2021, the trend of foreign capital inflow remains stable. As of the closing on December 31, northbound funds had bought a net 432.170 billion yuan in the whole year, exceeding 400 billion yuan in a single year for the first time in history.
It is worth noting that in 2019, MSCI, FTSE Russell and S & P Dow Jones concentrated on or expanded the inclusion factors of a shares. In this context, the northward capital inflow in that year exceeded 350 billion yuan.
In 2021, MSCI and FTSE Russell did not further improve the inclusion factor of a shares. This also means that the inflow of foreign capital of more than 430 billion yuan in 2021 is not the result of passive funds following the “mechanical allocation” of the index, but active funds are allocating additional A shares.
In this regard, China Industrial Securities Co.Ltd(601377) global strategy analyst Zhang Yidong believes that foreign capital will continue to embrace Chinese assets next year. On the one hand, the RMB exchange rate is expected to remain strong in 2022, which is conducive to overseas investors’ allocation of China’s high-quality assets; On the other hand, in recent years, the high-level opening-up of the capital market has been promoted in an orderly manner, and its attraction to foreign investors has been continuously improved.
the power equipment sector led by a large margin
Looking back on 2021, the characteristics of plate rotation and structural differentiation are very significant. In this process, carbon neutralization has become the main line of the market throughout the year, and the related high-end manufacturing directions such as photovoltaic, wind power and new energy vehicles are rising rapidly.
according to the new Shenwan industry division, as of the closing on December 31, the power equipment industry as a whole rose 47.86% this year, ranking first in the primary industry.
All the top ten stocks in the industry gained gains, Contemporary Amperex Technology Co.Limited(300750) rose 67.6% in the whole year, and the annual line increases of Sungrow Power Supply Co.Ltd(300274) , Trina Solar Co.Ltd(688599) , Ja Solar Technology Co.Ltd(002459) exceeded 100%.
Wei Wei, chief strategist of Ping An Securities, will continue to be optimistic about the direction of carbon neutralization next year, firmly saying that carbon neutralization is the long-term main line of China’s industrial transformation and upgrading, which will give birth to new economic growth points and bring medium and long-term layout direction to the capital market.
“On the one hand, industries such as new energy, new energy vehicles and energy storage will continue to grow rapidly; on the other hand, energy-saving and environmental protection materials and energy-saving equipment are expected to usher in new growth points. On the whole, we suggest looking for the diffusion of investment opportunities in all links along the above industrial chain. At the same time, we should pay attention to preventing the risk of periodic overvaluation.” Wei Wei said.
top ten bull stocks of the year
Hubei Yihua Chemical Industry Co.Ltd(000422) takes the lead
in 2021, the top ten bull stocks of A-Shares were officially released. Excluding the secondary new shares listed during the year, Hubei Yihua Chemical Industry Co.Ltd(000422) took the lead with a huge increase of 565.94% in the whole year. The annual linear growth of Lecron Industrial Development Group Co.Ltd(300343) , Center International Group Co.Ltd(603098) , Jiangxi Special Electric Motor Co.Ltd(002176) , Andon Health Co.Ltd(002432) and so on all exceeded 400%.
On the whole, traditional cyclical sectors such as chemical industry have become the high incidence of bull stocks this year, which is related to the rise in commodity prices under the background of global energy shortage. In addition, the new energy vehicle industry chain performed well throughout the year, and bull stocks were born in upstream lithium resources, auto parts and other fields.
The strategy team of Tianfeng Securities Co.Ltd(601162) said that “boom” is the “anchor” for the differentiation of A-share market structure in 2021. The capital’s pursuit of medium and short-term profit growth is the leading factor determining the style of the A-share market. The dominant small cap style in 2021 is the resonance between the low base factor and the upward industrial cycle.
Looking at 2022, Tianfeng Securities Co.Ltd(601162) believes that most of the low base effect of small cap stocks will disappear, “more scarce high boom meets more abundant liquidity” will be the main investment logic next year. On this premise, there is an opportunity of “dilemma reversal” in the mandatory food and breeding industry; 5g communication may be close to the industrial inflection point, and there may be nonlinear growth opportunities in the fields of Internet of things and meta universe.
(Shanghai Securities News)
