The Shanghai and Shenzhen index continued to fluctuate and fall after opening low in early trading today. As of the close, the Shanghai index fell 2.60% to 322353 and the Shenzhen index fell 3.08% to 1206363. In terms of sectors, shenwanyi sector reappeared the general decline today. Among them, the decline of national defense and military industry, medicine and biology and real estate was relatively small, and the decline of food and beverage, commerce and retail, agriculture, forestry, animal husbandry and fishery was the top. The turnover of the two cities was 969.81 billion yuan, down 7.65% from the previous trading day and 10.62% from the average of the previous five days. The net sales of Shanghai Stock connect were 7.268 billion yuan, the net sales of Shenzhen Stock connect were 7.141 billion yuan, and the net sales of northbound funds were 14.408 billion yuan.
Market focus:
The State Food and drug administration has also approved the registration applications of five covid-19 antigen products, namely Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Beijing Hotgen Biotech Co.Ltd(688068) , Tianjin boosses biology, Chongqing Mingdao Jietai biology and Beijing Lepu diagnosis. Since then, a total of 10 covid-19 antigen self-test products have been officially launched. Previously, the State Food and Drug Administration issued a notice approving the change of covid-19 antigen product self-test application of Nanjing Nanjing Vazyme Biotech Co.Ltd(688105) , Beijing jinwofu, Shenzhen Huada Yinyuan, Guangzhou Guangzhou Wondfo Biotech Co.Ltd(300482) , Beijing huaketai biology.
Strategy suggestion: focus on the pharmaceutical and biological sector
Today, the Shanghai and Shenzhen index reappeared its deep correction. After opening low in the morning, it briefly rose and soared, then continued to fluctuate and fall, and finally contracted and fell. Northbound funds continued to flow out throughout the day, with a firm departure attitude, and the net outflow scale reached a new high since January 27. Market sentiment has deteriorated again. Over two stocks in 4000 cities have fallen. The COVID-19 sector and the aviation equipment are on the rise. The new energy track shares have fallen sharply, and Baijiu, airports and travel sectors are also falling.
In terms of the research and judgment of the general trend of a shares, we believe that today’s market performance or the main reason is affected by the market expectation and sentiment of the renewed impact of China’s covid-19 epidemic. On the one hand, under the background of net outflow for many days in a row, the northbound funds left the site again sharply today, which may be mainly due to the deterioration of the epidemic situation in many places in China affecting the expectation of economic growth. The Federal Reserve is likely to announce the process of raising interest rates this week, but due to full expectations, the impact on macro liquidity has been very limited. On the other hand, in terms of the performance of the sector, the downstream consumer sector, which was seriously impacted by the epidemic, led the decline. We have repeatedly stressed that we must remain cautious after continuous correction and wait for the economy to return. At the current time point, the deterioration of macro fundamentals is more obvious. First, the performance of social finance and credit in February failed to continue the “good start”, which deteriorated beyond expectations, reflecting that the environment facing China’s steady growth is still complex. Second, the epidemic situation in China is not optimistic. Therefore, the bottom of A-Shares may not be formed, suggesting a reasonable control of positions and paying attention to the safety margin, Pharmaceutical and biological, real estate, national defense and military industry and other sectors whose prosperity is expected to improve.
