On March 16, the financial stability and Development Commission of the State Council held a special meeting China Securities Co.Ltd(601066) Securities chief strategy officer Chen Guo said that the special meeting of the finance committee expressed firm support for steady growth and clarified the future development ideas of the real estate market. At the same time, it has given a clear tone to the issues concerned by the market, such as China concept stocks, platform economy and Hong Kong stocks, which has become the current “policy reassurance” in these key areas.
“Today, the market rebounded across the board because the meeting of the financial committee greatly boosted market confidence.” Chen Guo expects that the growth style of this round of rebound is dominant, and the first quarter performance is the core.
He said that the main reason for the sharp decline in the market in the early stage was the lack of market confidence and the deterioration of market micro liquidity, resulting in an obvious oversold in the market. The equity risk premium has reached the limit state of 90% quantile in recent eight years, and the stock index point is significantly lower than the reasonable level. In this context, the state should vigorously boost market confidence and alleviate the deterioration of market liquidity in any form.
He believes that the release of covid-19 diagnosis and treatment plan (Ninth Edition) on March 15 can not only alleviate the shortage of medical resources, but also reduce the control time and resources, which will further alleviate the pressure of urban prevention and control, but also boost the market’s confidence in epidemic repair and economic recovery. In addition, with the improvement of the external environment, the results of the FOMC meeting of the Federal Reserve will be released in the early morning of Beijing time, and the market has long been worried about the arrival of boots. There are also signs of easing the conflict between Russia and Ukraine.
Overall, Chen Guo believes that the current market has high cost performance in the long run and is suitable for the allocation of long-term funds into the market. In the context of a series of concerns comprehensively improved, the market is expected to usher in an oversold rebound and a quarterly report. In terms of industry allocation, it is suggested to pay attention to the high prosperity and marginal improvement of the first quarter report.
