After the sharp decline of A-Shares and Hong Kong stocks, a number of fund companies urgently lifted the market and took a pulse of the future market.
All day long after the market opened lower, the market crashed, oil and gas, coal and other cyclical stocks fell, tourism, Baijiu and other consumer sectors fell, and the two cities exceeded 4100 stocks and fell 500 stocks in. As of the close, the Shanghai index fell 2.61%, the Shenzhen composite index fell 3.08% and the gem index fell 3.56%. Northbound funds sold a net 14.408 billion yuan throughout the day. At the close of Hong Kong stocks, the Hang Seng Index fell 4.97%, the largest one-day decline since May 2020, and the Hang Seng technology index fell 11.03%, the largest one-day decline in history.
Why did A-Shares and Hong Kong stocks continue to fall sharply? When the European and American stock markets stabilize, can the market usher in a reversal? After the crash, which sectors have greatly increased their market attractiveness? Boshi fund, investment promotion fund, Harvest Fund, Cinda Australian silver, West profit, Nord fund, Hang Seng Qianhai and Hong soil innovation 8 fund companies emergency solution.
internal and external factors impact, A-share sentiment drops to freezing point
On Monday, under the impact of many internal and external factors such as the sudden severe epidemic situation in China, the lower than expected macro data and the continuous decline of zhonggai shares, the sentiment of the already fragile A-share market fell to the freezing point and the stock market suffered a heavy setback.
Boshi Fund believes that the current A-share market is greatly affected by external factors and the market sentiment is relatively unstable, resulting in a large fluctuation range of the index. The reasons for the market downturn on Monday are as follows: affected by the new round of sanctions announced by the United States, US stocks fell sharply on Friday; The latest social finance data released in February was less than expected, indicating that the financing demand of China’s real economy is relatively weak.
In addition to the impact of various internal and external factors on market confidence, Cinda Aoyin Fund believes that micro liquidity is also under pressure, the expansion of market volatility intensifies the liquidity impact, the epidemic in many places and locations in China accelerates the spread, and some enterprises stop production and shutdown, which basically disturbs market sentiment.
In terms of risk preference, red earth Innovation Fund believes that the political game stalemate and the “stagflation” risk caused by the conflict between and Russia are continuously interpreted. The pre reaction of the Fed’s interest rate hike market and global liquidity pressure affect the risk appetite of Hong Kong stock market and overseas funds for the Chinese market.
Hang Seng technology index hit the biggest one-day decline in history
On March 14, Hong Kong stocks opened sharply lower and continued to weaken. The Hang Seng Index fell below 20000 points, a new low in recent six years. The Hang Seng technology index closed down 11.03%, the largest one-day decline in history, and the closing point hit a new low since the release of the index.
Popular Chinese concept stocks fell sharply. Xiaopeng automobile fell by more than 22%, ideal automobile fell by more than 19%, BiliBili fell by more than 19%, meituan fell by more than 16%, JD fell by more than 14%, Alibaba fell by more than 10% and Tencent fell by more than 9%.
The Hong Kong stock market fell sharply. Hang Seng Qianhai fund summarized three main reasons: 1. The resurgence of covid-19 epidemic has exacerbated the market’s concern about the economy, thus stimulating the demand for hedging; 2. U.S. stocks are dragged down by China concept stocks. At present, the global market is in an emotional environment with high sensitivity and strong vulnerability, and the potential risks faced by China concept stocks are still uncertain. Pessimistic expectations directly lead to the continuous sharp decline of China concept stocks, drag down the performance of Hang Seng science and technology index with high correlation, and also have an impact on the main board of Hong Kong stocks; 3. The sanctions against Russia triggered a panic of transnational investment. The recent sanctions against Russia by western countries triggered a panic of transnational investment and investment confidence fell to the freezing point, which led to the emergency and accelerated sale of overseas assets by foreign capital, which directly had a negative impact on the Hong Kong market.
For the recently concerned zhonggai shares, Harvest Fund believes that due to external factors such as international geographical conflicts, zhonggai shares have fallen sharply recently, which is accidental. From the perspective of investment, the fluctuation of science and technology growth stocks represented by China concept stocks is relatively large, and the fluctuation of emerging markets is greater than that of developed markets, and the fluctuation of offshore markets is also higher than that of onshore markets. Overall, at present, the share price of zhonggai shares has fallen more and is more affected by the news and emotional trading, but high-quality companies still have a solid fundamental foundation, which has little to do with the valuation itself.
Western profit Fund believes that short-term sentiment and capital pressure are the main reasons for the significant adjustment of Hang Seng technology index.
sentiment will still be the main reason to disturb the market, and confidence is more important than gold
many fund companies believe that the recent Russian Ukrainian war has variables, tighter liquidity, the US Federal Reserve’s interest rate hike boots in March and other external factors will still disturb the market sentiment, and then affect the trend of A-Shares and Hong Kong stocks
Boshi fund and Hang Seng Qianhai Fund believe that the probability of A-Shares will maintain a wide fluctuation trend. Cinda Aoyin Fund believes that the financial data in February led to the short-term adjustment of the market, but the direction is general, so there is no need to worry too much in the follow-up. On the other hand, as a small credit month, the financial data in February are generally directional, and the change of credit environment in March is more important. From the medium-term perspective, the further trend in the future still needs to wait for follow-up decisions. Harvest Fund believes that short-term factors do not change China’s economic fundamentals for the long term. Zeng Wenhong, fund manager of Nord fund, pointed out that in the short term, the major indexes are oversold, and in the medium and long term, they are currently at the bottom of the market.
Zeng Wenhong also mentioned that what the market lacks most is confidence. For us, confidence is indeed more important than gold.
China Merchants Fund said that firmly believes that spring will still come, but it needs patience, defense and waiting at this stage. Remain cautious until the demand side policy and credit easing path are clear. At this stage, we need to wait patiently for the market risk appetite to rise from a low level.
From the valuation point of view, red earth Innovation Fund believes that A shares are at a low level. At this time, active management can often get relative benefits. The following trend needs to see whether there are marginal positive changes in the macro factors leading to the market (Russia, Ukraine conflict, epidemic situation, social integration). In the long run, China’s growth toughness and better policy cycle are still optimistic.
fund companies are optimistic about these directions
After the full decline of A-Shares and China concept shares, which sectors have greatly increased their market attraction?
In the absence of essentially negative economic fundamentals and relatively friendly policies and liquidity, Boshi Fund believes that the medium and long-term good trend of a shares remains unchanged, and its high-quality leading enterprises still have good investment value in new energy, science and technology, advanced manufacturing and other sectors benefiting from economic transformation.
Zeng Wenhong believes that during this period, he can buy promising stocks at a price with high cost performance, and comes to the conclusion that it is or will be a good time for the layout of the equity market. The main reasons are: after the geographical conflict in some regions reaches its peak, the impact on the market will be weaker and weaker, the valuation of value stocks is at the bottom of history, and there is little room for decline.
in terms of the market, Harvest Fund believes that due to the suppression of market risk aversion due to its high growth style, it can continue to pay attention to the industry sectors that underestimate the value and benefit from the steady growth policy. Especially close to the annual report and the first quarter earnings disclosure window, after the risk aversion is fully released, the market focus may return to listed companies.
Western Benefit Fund believes that pays attention to the main line of global inflation in the short term, and the technology sector with high growth and the consumer sector benefiting from the recovery of the epidemic in the medium and long term.
After a substantial adjustment, the valuation of Hong Kong stocks was at a record low.
from the perspective of investment, Harvest Fund believes that the fluctuation of science and technology growth stocks represented by China concept stocks is relatively large, and the fluctuation of emerging markets is greater than that of developed markets, and the fluctuation of offshore markets is also higher than that of onshore markets. Overall, at present, the share price of zhonggai shares has fallen more and is more affected by the news and emotional trading, but high-quality companies still have a solid fundamental foundation, which has little to do with the valuation itself.
Hang Seng Qianhai Fund believes that in the sector, it is recommended to focus on some undervalued industries related to the “steady growth” policy in the short term, as well as industries with high probability of being revalued in the Hong Kong market, such as green power, energy storage and other sectors, and pay attention to industries that may be given policy support after being affected by the downward pressure of the economy, such as consumption Financial industry, etc., but avoid industries and companies highly affected by industrial policies and political factors.
