Key investment points:
On March 16, the major indexes of the market rebounded sharply, among which the Shanghai Composite Index rose by 3.48% and the gem index rose by 5.20%; In terms of size, the CSI 500 rose 3.21%, while the CSI 300 rose 4.32%. In terms of transaction volume, the two cities continued to transact 1.19 trillion yuan throughout the day, an increase of 67.8 billion yuan over the previous trading day; In terms of funds going north, only 82 million yuan flowed out throughout the day, and the outflow pace slowed down significantly. In terms of industries, shenwanyi industries have rebounded to varying degrees, with non bank finance, power equipment and social services sectors leading the increase, all exceeding 5.0%, while agriculture, forestry, animal husbandry and fishery, medicine and biology, coal and other sectors have a relatively small increase.
On the 16th, the A-share market rebounded sharply, mainly due to the convening of the financial committee meeting, which significantly boosted the confidence of the market. On the 16th, Liu he presided over the gold stability meeting. The meeting pointed out that “relevant departments should actively introduce policies beneficial to the market and carefully introduce contractive policies”, “all policies that have a significant impact on the capital market should be coordinated with the financial management department in advance to maintain the stability and consistency of policy expectations”, “strengthen coordination and communication and be accountable when necessary”, Precise has made clear arrangements for the problems worried by the market in the near future, which has significantly boosted market confidence. After superposition, the adverse factors improved, such as the sharp rebound of Hong Kong stock market, especially China concept stocks, and the temporary reversal of the large-scale outflow of funds going north. The sharp rebound of important market references further improved the confidence of the market and brought the general rise of a shares.
For the rebound on the 16th, we believe that the repair factors of the emotional side dominate. In the short term, a strong rebound can not completely avoid the repeated process at the bottom of the market. However, the end of the policy is out. In the medium and long term, we continue to emphasize that the expectation of steady growth policy to promote the recovery of enterprise prosperity is relatively clear, and it is expected to bring the low point and rise of enterprise profits. After the recent process of panic and risk aversion, the probability of A-Shares is a relatively good low allocation opportunity in the year. It is suggested that investors should consider the long term and focus on the first quarter report and the performance expectation in the year.
Risk tip: overseas market fluctuation risk, economic downturn exceeding expectations, and global epidemic development exceeding expectations.
