3 on March 11, A-Shares staged a V-shaped reversal, and all three indexes turned red, led by the gem index. As of the close, the Shanghai index rose 0.41%, the Shenzhen Composite Index rose 0.62%, and the gem index rose 1.15% . Securities companies, agriculture, forestry, animal husbandry and fishery sectors strengthened significantly. The agency believes that with the gradual announcement of the performance forecast of the first quarterly report of listed companies, the market will gradually return to the fundamental research and judgment, and the market differentiation will probably appear.
Hong Kong stock market also rebounded rapidly. As of press time, the decline of Hang Seng Index narrowed to less than 2%, which had previously fallen nearly 4%. The decline of Hang Seng technology index narrowed to less than 5%, after falling nearly 9% . Alibaba’s decline narrowed to about 5%, and Tencent holdings’s decline narrowed to 4%.
Last night, in the U.S. stock market, China concept stocks fell sharply. Leading stocks such as shell, iqiyi, pinduoduo, tal, JD and BiliBili all fell by more than 10%. As the sector fell all the way, many asset management giants such as qiaoshui, which copied the bottom of zhonggai shares in the fourth quarter of last year, were also “covered”.
Despite the “continuous decline” of zhonggai shares, there are still more and more bottom reading funds pouring in. The latest data show that more than 10 billion funds have flowed into zhonggai Internet ETF since this year.
Hong Kong stocks rebounded and stabilized, while Alibaba and Tencent narrowed their declines
On March 11, the major indexes of Hong Kong stocks rebounded from the bottom. As of press time, the decline of Hang Seng Index narrowed to 1.3%, and the decline of Hang Seng technology index narrowed to 3.8%. Previously, it fell by more than 8%, China glass rose by more than 21%, and AIA rose by more than 3%; Alibaba’s decline narrowed to about 5%, and Tencent holdings’s decline narrowed to 4%.
A-Shares rebounded downward, and the securities sector made a strong upward attack
Today, the three major A-share indexes showed a downward trend of recovery. The Shanghai Composite Index closed at 330975 points, up 0.41%, while the Shenzhen Component Index and the gem index rose 0.62% and 1.15% respectively. The pharmaceutical sector continued to strengthen, and Shanghai Labway Clinical Laboratory Co.Ltd(301060) and other stocks rose by the limit. Aquaculture and securities companies also led the increase.
Securities companies rose after rising 35.
In addition, with the gradual arrival of the first quarterly report, the market gradually began to pay attention to and layout enterprises with high performance growth. Today, Jiugui Liquor Co.Ltd(000799) closed the daily limit. The company’s performance in the first two months exceeded expectations and continued to promote the strategy of large single products led by internal ginseng wine.
according to the announcement on Jiugui Liquor Co.Ltd(000799) March 10, after preliminary accounting, the company is expected to realize a total operating revenue of about 1.4 billion yuan from January to February, an increase of about 120% over the same period last year; The net profit is expected to be about 465 million yuan, an increase of about 130% over the same period last year
Chen Guo, managing director and chief strategy officer of China Securities Co.Ltd(601066) securities, said that the performance of growth stocks and gem is expected to be better than that in February. From late March to early April, A-Shares will focus on the first quarterly report. It is expected that growth stocks with large adjustment and good first quarterly report since the beginning of the year will have more performance space.
what happened to the concept shares
judging from the news, recently, the official website of the securities and Exchange Commission (SEC) published a list of five Chinese stock companies. The SEC said that based on the foreign company Accountability Act (hfcaa), if a foreign listed company fails to submit the report required by the US listed company accounting oversight committee for three consecutive years, the SEC has the right to delist it from the exchange
The SEC finalized the provisional list on March 8, including Baiji Shenzhou, yum China, zaiding medicine, shengmei semiconductor and Hehuang medicine. The five companies can provide evidence to the sec before March 29 to prove that they do not meet the conditions for delisting.
Under the influence of multiple bad news, Zhongyu shares plunged again last night. Among them, Yixian e-commerce fell 39.5%, shell and iqiyi fell 23.93% and 21.71% respectively, and pinduoduo, tal, JD and bilibilibili fell 17.49%, 16.72%, 15.83% and 14.1% respectively.
The NASDAQ China Jinlong index, which tracks Chinese stocks, fell 10.01%, the largest one-day decline since October 2008.
Dan bin, an investment boss, wrote on his microblog last night: zhonggai stock is another bloody night! In addition, China’s overseas Internet ETF fell 73.91%.
In this regard, the CSRC responded yesterday that this is a normal step for US regulators to implement the foreign company Accountability Act and relevant implementation rules. We have previously expressed our attitude on the implementation of the foreign company accountability law for many times. We respect that overseas regulators strengthen the supervision of relevant accounting firms in order to improve the quality of financial information of listed companies, but we firmly oppose the wrong practice of some forces to politicize securities supervision. We have always adhered to the spirit of openness and cooperation, and are willing to solve the inspection and investigation of relevant firms by the US regulatory authorities through regulatory cooperation, which is also in line with the international practice.
recently, China Securities Regulatory Commission and the Ministry of finance have continued to carry out communication and dialogue with the American public company accounting supervision board (PCAOB) and made positive progress. We believe that through joint efforts, the two sides will be able to make cooperative arrangements in line with the legal provisions and regulatory requirements of the two countries as soon as possible, jointly protect the legitimate rights and interests of global investors and promote the healthy and stable development of the markets of the two countries
On March 11, relevant companies issued announcements in response. Yum China announced that according to the current provisions of the act, the company’s common shares will be delisted from the New York Stock Exchange in early 2024 unless the act is amended to exclude the company or PCAOB can fully verify the company’s auditors within the specified time.
Baiji Shenzhou announced that it has been seeking solutions to meet the requirements of the foreign company Accountability Act and will continue to ensure compliance and continue to comply with all relevant laws and regulations. Zaiding said it was evaluating, designing and implementing additional business procedures and control changes to meet the requirements of the HFCA act.
A fund manager in Shanghai said that the market was already fragile under the background of the current conflict between Russia and Ukraine, and the move of the CSRC further amplified the tension of investors.
asset management giants have been “covered”
In fact, since the end of February last year, the Chinese capital management sector has fallen all the way.
According to the latest position data disclosed by the Securities Regulatory Commission of the United States, the world’s largest hedge fund jinqiaoshui increased its position in many zhonggai shares such as Alibaba, lufax holdings, New Oriental, pinduoduo and jd.com in the fourth quarter of last year.
In addition, in the fourth quarter of last year, Morgan Stanley, Renaissance technology and 72 point asset management bought 468164 million shares, 142761 million shares and 236885 million shares of New Oriental respectively; Morgan Stanley bought 7.355 million shares of Tal; Tiger global added 2.59 million shares to JD; The Canadian pension plan investment authority added 1432400 shells.
according to statistics, as of March 10 this year, New Oriental fell 45.71%, shell fell 45.33%, pinduoduo fell 38.66%, iqiyi fell 29.61% and JD fell 25.05%. If the above asset management giants still hold the above shares, they have suffered a lot of losses
Despite the “continuous decline” of zhonggai shares, the bottom reading funds are still flowing in since this year. Taking zhonggai Internet ETF as an example, as of March 10, the latest share of the fund was 51.631 billion, a significant increase of 18.6 billion, or 56%, compared with 33.03 billion at the end of last year. If calculated according to the average transaction price of 1.22 yuan, more than 10 billion yuan of bottom reading funds have poured into zhonggai Internet ETF since this year.
Bocom Schroeder China Securities overseas China Internet Index securities investment fund has also been sought after.
on March 7, 3, BOCOM Schroder Fund announced that since the amount of overseas securities investment of the fund is close to the upper limit, in order to stabilize the scale of the fund and pursue stable operation, its bocom Schroder China Securities overseas China Internet Index Securities Investment Fund (LOF) has suspended its subscription (regular and fixed investment) business since March 8, 2022
As early as a week ago, BOCOM zhonggai Internet lof suspended the large subscription business (including regular fixed investment) and announced that the daily purchase limit was 1000 yuan, because the fund’s overseas securities investment limit was close to the upper limit, in order to stabilize the fund scale and pursue stable operation. This shows that after the announcement of the daily purchase limit of 1000 yuan, there are still funds pouring in, which makes BOCOM zhonggai Internet lof have to directly “thank customers behind closed doors”.
Guohai Franklin fund said that recently, the first batch of five Chinese ADRs that published the annual report of 2021 entered the identified list, and the market expected that the remaining zhonggai shares would also be included in the list after the annual report was released, thus causing investors to panic about the negative impact of the act.
In the view of Guohai Franklin fund, if China US regulators can reach an agreement on relevant matters before the relevant zhonggai shares are listed in the identification list for the third time in 2024, continue to maintain the status of ADR in the United States, and complete the secondary listing of zhonggai shares in Hong Kong shares or A-Shares as soon as possible, it will be the best situation. If no agreement can be reached, most of the medium and large market capitalization stocks have completed the secondary listing of Hong Kong stocks. In the future, if they are delisted in the United States, they can continue to trade in Hong Kong stocks. However, there is a large gap between the trading volume and investment instruments of the Hong Kong stock market and the US stock market. Therefore, these stocks will face a lack of liquidity, resulting in the discount of stock prices. At the same time, some international investors can only invest in the US stock due to contractual restrictions and cannot move their positions to the Hong Kong stock market, which will also lose some trading volume.
Looking forward to the future, Guohai Franklin fund believes that there is room for discussion before the relevant companies are listed, prohibited from trading and delisted for the third time in 2024. Therefore, the current market adjustment is more the release of panic, but the relevant stocks are under pressure in the short term and need to be analyzed again according to the negotiation in the future.
from the perspective of fundamentals, Huatai Securities Co.Ltd(601688) said in the latest research report that looking forward to 2022 and the long-term development trend of the industry, zhonggai Internet sector will focus on new growth points (enterprise Internet, sea expansion, sinking market, etc.) to drive the performance growth to accelerate again. In January 2022, the State Council officially announced China’s first national special plan for digital economy, the “14th five year plan” for digital economy development, which defined the policy support attitude for digital economy and Internet related industries. On the premise of compliance, the Internet industry is expected to achieve long-term sustainable profit growth
