Today’s investors, please stand up and observe three minutes of silence for our partners who are heavily invested in Hong Kong stocks.
In terms of a shares, the three major stock indexes once fell by more than 2% in the intraday. A miracle day was staged in the afternoon to reproduce the deep V rebound. The three major indexes turned red one after another. The Shanghai index closed up 0.41% to 3309 points, the Shenzhen Component Index rose 0.62% and the gem index rose 1.1%.
Let’s see what happened.
“V” reverse! The Shanghai Composite Index rose by 2340564% in the afternoon
covid-19 detection concept stocks lift the limit tide
On the 11th, A-Shares fell by more than 2% in the morning due to the stock concept event last night; On the disk, brokerage stocks took the lead in charging in the afternoon, and the covid-19 detection concept set off a tide of trading. Overall, there were nearly 2900 rising stocks in the two cities, the market turnover exceeded trillion for seven consecutive days, foreign capital continued to flee, and the cumulative flight exceeded 36 billion throughout the week.
As of the close, the Shanghai index rose 0.41% to 330975 points, the Shenzhen Composite Index rose 0.62% to 1247737 points, and the gem index rose 1.15% to 266546 points; The total turnover of the two cities was 1050.2 billion yuan, and the net sale of funds from the North was 5.042 billion yuan.
Brokerage stocks rose in the afternoon, Boc International (China) Co.Ltd(601696) straight-line raised the daily limit, Chinalin Securities Co.Ltd(002945) also closed the board, China International Capital Corporation Limited(601995) , Zhongtai Securities Co.Ltd(600918) , Shanxi Securities Co.Ltd(002500) and other stocks followed suit.
Covid-19 detection, covid-19 drugs and other anti epidemic themes continued to be active, 6 Luzhou Laojiao Co.Ltd(000568) days 6 boards, Guangzhou Wondfo Biotech Co.Ltd(300482) , Shanghai Labway Clinical Laboratory Co.Ltd(301060) and other stocks rose by 20% for two consecutive days.
In terms of news, Wuxi Market Supervision Bureau recently held a symposium on the development of family independent nucleic acid / antigen detection products to fully solve the difficulties and problems encountered by enterprises in product registration and declaration, and promote the rapid listing of family independent nucleic acid / antigen detection products in Wuxi.
In addition, a document is also circulating in the market.
CICC commented that the epidemic situation in China is repeated and attaches importance to investment opportunities of covid-19 line
Recently, the international situation has been turbulent, and indexes around the world have attended a sharp correction; At the same time, the epidemic situation in China has been repeated, with many cases of Omicron infection. We suggest that the pharmaceutical sector invest in the short term, pay attention to the investment opportunities of China’s anti epidemic line, and advance the asset allocation that can be attacked and retreated.
Recently, there have been many new additions all over the country. At present, covid-19 diagnosis and screening PCR nucleic acid detection is still the gold standard. The sudden increase in the number of people to be tested in the short term has brought a great load to the existing medical institutions. Due to the strong transmission and weak toxicity of Omicron this time, the carrying capacity of the first and second tier cities is OK, and there is a certain pressure for PCR detection below the third and fourth tier cities. In this context, Wuxi market supervision and Administration Bureau held a discussion on the development of family independent nucleic acid antigen detection products to strengthen the possibility of home detection in extreme cases. Suggestions: home self inspection related: Zhejiang Orient Gene Biotech Co.Ltd(688298) , Guangzhou Wondfo Biotech Co.Ltd(300482) , Andon Health Co.Ltd(002432) , Dean Biology ( Dian Diagnostics Group Co.Ltd(300244) ), Daan Gene Co.Ltd(002030) ; PCR detection: Guangzhou Kingmed Diagnostics Group Co.Ltd(603882) , Dian Diagnostics Group Co.Ltd(300244) ; Upstream raw material: Nanjing Vazyme Biotech Co.Ltd(688105)
there are other securities companies that analyze and comment that antigen detection may become an important supplementary means for epidemic prevention and control in China
1. Event stimulation: the epidemic situation has been repeated. Yesterday, there were more than 400 newly confirmed cases in the mainland and cases in many regional cities. Among them, offline classes were suspended in Shanghai due to the new epidemic situation. Covid-19 epidemic will not disappear in the short term. In the medium and long term, China implements the dynamic clearing strategy, and forms a closed-loop mode by means of vaccination, nucleic acid testing, rapid diagnosis of patients, and drug treatment.
2. At present, there are three main methods for covid-19 detection. Overseas covid-19 detection is mainly antigen detection
1) nucleic acid detection: the detection has high sensitivity and specificity, which is the “gold standard” for the diagnosis of covid-19 pneumonia, but the detection requirements are high, and the results are generally available within 24 hours; Antigen detection: the operation is simple and convenient, and the results can be obtained in 15 minutes at the fastest. The disadvantage is that the sensitivity is lower than that of nucleic acid detection; Antibody detection: it is simple, convenient and rapid, which is similar to antigen detection, but it can not detect patients in the infection window.
2) however, due to the large number of confirmed cases of covid-19 overseas and the primary requirement of medical institutions and medical staff for the simplicity and efficiency of detection reagents, antigen detection has been widely used in the current epidemic prevention and control in Europe and the United States;
In April 2020, the UK began to provide free antigen testing to the public; On December 15, FDA approved the first antigen self-test kit to be put on the market; On November 1, Australia began to conduct covid-19 antigen home self inspection; After the outbreak of the second wave of the global epidemic in 2021, Germany first began to sell covid-19 antigen self-test kit on March 6, and each person can be tested free of charge once a week.
3) according to the annual detection volume in 2021, the average daily detection volume per 1000 people in most overseas countries is about 2-5 times. The epidemic situation is serious and the detection demand is large. The significant increase in autumn and winter (January March and October December) is mainly due to the increase in the number of infections caused by covid-19 virus mutation.
3. Covid-19 antigen detection may become an important supplementary means for epidemic prevention and control in China
Chinese antigen detection or gradual release: 1) antigen detection products are mature and the sensitivity can reach 90%; European antigen testing has been implemented for more than a year and has been verified for epidemic prevention and control;
2) the production capacity of products is sufficient. In 2021, China exported covid-19 test kits worth 66.9 billion yuan overseas, and the production expansion cycle of enterprises is relatively short;
3) specific application scenarios require rapid response to antigen detection, such as ports, airports, shipping and other places; Takeout workers and taxi drivers are high-risk transmission sources. The cost of nucleic acid detection every day is high and the detection speed is slow. Antigen detection or provide more convenient control.
Hong Kong stocks decline narrowed
Hong Kong stocks continued to fall and fell sharply in early trading. The Hang Seng technology index once fell by more than 8%, hitting a new low. As of press time, the decline had narrowed significantly.
According to the financial Associated Press, people close to the regulatory authorities said that the dialogue and consultation between Chinese and American regulators on audit supervision cooperation are progressing smoothly. Both sides have shown their sincerity to solve the problem and are expected to reach a consensus as soon as possible.
Some securities companies commented that on March 10, 2022, the SEC Website disclosed five companies that entered the identified list because of the foreign company Accountability Act. They are Yum China (yumc), Baiji Shenzhou (bgne), zaiding Pharmaceutical (zlab), Hehuang Pharmaceutical (HCM) and ACM Research (ACMR). The confirmation date of the list is March 8, 2022, If the relevant issuer believes that it has been wrongly included in the list, it shall submit relevant evidence to the SEC no later than March 29, 2022.
This event is not sudden. It is just that the market has expected the further landing of the event in the early stage, and it is expected that other zhonggai companies will follow suit, which may cause further pressure on the already fragile sector.
The foreign company Accountability Act is an accidental act, but it also has an inevitable basis. The problem of mutual audit manuscripts between China and the United States has a long history. On December 2, the SEC issued complete rules.
The detailed rules on December 2 specify the calculation points and standards for delisting in three years. The earliest start time is the spring of 2021, because the SEC will judge whether the company is an “identified company” based on the 2021 annual report submitted by Chinese companies next year. Most Chinese companies take December 31 as the base date and submit their annual reports before April. After submission, the SEC will conduct audit and review. If it is included in the list of identified companies defined by the SEC for three consecutive years, it will face the consequences of delisting. Once placed in 2021, it will enter the continuous review of rolling basis, the first time in 22 years, the second time in 23 years and the third time in 24 years. After being placed in the list for three consecutive times, in theory, the SEC will delist the company from the exchange soon. The five companies proposed this time are equivalent to the first batch of companies that have naturally entered the list of identified companies after disclosing Q4 performance.
The foreign company Accountability Act is a regional risk, which has nothing to do with the company. As long as the company is in China, finds a Chinese auditor to do the audit work, the auditor is registered in China, and the provision of the manuscript requires the approval of the Ministry of Finance and relevant departments, then this risk exists.
In the face of the foreign company Accountability Act, in addition to waiting for negotiations between senior government officials, zhonggai Internet companies are basically ready at the individual level. There are two main solutions:
(1) if the company is listed in Hong Kong or a shares, if it can be listed in Hong Kong and within 12 months of delisting, the average daily trading volume in the United States is less than 5% of the global trading volume, the company is allowed to terminate the procedures and stop reporting after delisting. Among them, there are mainly two schemes of secondary listing or dual listing in Hong Kong, so as to make Hong Kong a major trading and listing place and hedge the delisting risk of the United States.
(2) privatization. Through consortium privatization, delisting and deregistration, it has no connection with the United States, and there is no need for transactions and announcements.
In the worst case, if neither China nor the United States can effectively solve this problem before 2024, the companies that can be listed twice or double major will lose only the trading volume from the U.S. market (some international investors can move their positions to Hong Kong, but it is expected that a considerable part cannot), rather than saying that the stock value of the whole company will become 0.5% This event is not sudden. It is just that the market has expected the further landing of the event in the early stage, and it is expected that other zhonggai companies will follow suit, which may cause further pressure on the already fragile sector.
China’s Internet suffers from overseas cyber attacks
The monitoring of the national Internet Emergency Center found that since late February, China’s Internet has continued to suffer from overseas cyber attacks. Overseas organizations control computers in China through attacks, and then carry out cyber attacks on Russia, Ukraine and Belarus.
After analysis, these attack addresses mainly come from the United States. There are more than 10 attack addresses from New York state alone. The peak attack traffic is 36gbps. 87% of the attack targets are Russia, and a small number of attack addresses come from Germany, the Netherlands and other countries.
It is reported that the national Internet Emergency Center has promptly disposed of the above attacks to the maximum extent.
