After a rare rise in recent years on Wednesday, the A-share and Hong Kong stock markets further rebounded sharply on Thursday morning. The A-share gem index rose more than 4% in the session. The Hang Seng technology index rebounded strongly, rising more than 11% during the session, and then the increase narrowed.
a shares continued to rebound, and the gem index rose by more than 4%
The A-share market continued to rebound in the morning. Among them, the Shanghai stock index returned to above 3200 points, and the gem index rose more than 100 points and returned to above 2700 points, with an intraday increase of more than 4%.
In terms of sectors, the real estate sector led the rise, with an increase of more than 4%, becoming one of the biggest highlights of the A-share market in the morning and other stocks rose by more than 10 shares, and the real estate leader China Vanke Co.Ltd(000002) once rose by about 8%.
On March 16, the financial stability and Development Commission of the State Council held a special meeting on the same day to study the current economic situation and capital market problems. It responded to the hot and key issues concerned by the market, such as monetary policy, real estate, zhonggai shares, platform economy and Hong Kong financial market, and sent a clear signal of stabilizing the macro-economy, financial market and capital market. Since then, the party and the two sessions have also voiced their voices.
At noon on March 16, Comrade Yi Gang, President of the people’s Bank of China and director of the office of the financial commission, presided over a meeting of cadres at or above the department level, in which it was mentioned that “we should strive for progress while maintaining stability and prevent and resolve risks in the real estate market”.
Everbright Securities Company Limited(601788) ‘s research view is that it is optimistic about the current round of rebound of a shares, and the industry allocation focuses on steady growth and consumption. After this meeting dispels the risk factors worried by the market in the early stage, the positive factors at the macro and micro levels accumulated in the early stage are expected to gradually dominate the market upward. It is suggested to focus on the two main lines of steady growth and consumption. In terms of steady growth, considering the expansion of fiscal expenditure and the requirements of stabilizing the economy this year, building materials, real estate and banks in the direction of steady growth are expected to benefit; Consumption is expected to be restored this year. The new version of COVID-19 is expected to be recovered and classified. The consumption demand is expected to be restored under the line. It is suggested that we should pay attention to the industries such as Baijiu, medicine, household appliances, aviation, airports and so on.
It is worth noting that the situation of net sales of northbound funds for eight consecutive trading days also changed in the morning, with a net purchase of nearly 3.2 billion yuan in half a day.
Hong Kong stocks rose further, and the Hang Seng technology index once rose by more than 11%
After a rare rise on Wednesday, Hong Kong stocks rose further this morning. The Hang Seng index opened at 2143071, up 6.69% from the previous trading day. After that, the increase was further expanded to nearly 7%, and then the increase narrowed.
Among the constituent stocks of Hang Seng Index, interior housing stocks led the rise, rongchuang China soared by 50%, and country garden service and country garden rose by more than 20%. The intraday increase of Longhu group was also close to 20%. Hong Kong Pharmaceutical stocks such as YaoMing biology and China biopharmaceutical also led the gains.
The Hang Seng technology index rose even more. At one time, it soared by more than 11% compared with the previous trading day, and then narrowed. As of the close, it still rose by more than 7%.
Among the constituent stocks of Hang Seng technology index, Wanguo data SW rose by more than 30% and once exceeded HK $38. The day before yesterday, the stock price of Wanguo data SW was as low as HK $18.90, which means that the stock rebounded more than doubled in less than three days.
Mingyuanyun also rose more than 30% in midday trading.
Baidu group – SW, BiliBili – SW and Zhong’an online rose more than 10%.
The Fed announced an interest rate hike overnight, which also failed to stop the pace of the market rebound. All three major stock indexes of US stocks closed up, with the NASDAQ index closing up 3.77%. China concept stocks rebounded violently, among which Century Internet, Zhihu, jinshanyun, dingdong shopping, happy gathering, shell, Betta and other stocks rose by more than 50%.
The Federal Open Market Committee (FOMC) of the Federal Reserve raised the federal benchmark interest rate by 25 basis points from 0% – 0.25% to 0.25% – 0.50%.
The recent situation in Russia and Ukraine still affects the global financial and capital markets.
According to Xinhua news agency, according to the statement issued by the Kremlin website on the 16th, Putin said at a meeting on the same day that Western sanctions against Russia have seriously hit the global economy. The West regards economic, financial, trade and other sanctions as “weapons” against Russia, resulting in the rise of gasoline, energy and food prices. These sanctions have also dealt a blow to Europe and the United States itself.
According to Ukrainian State News Agency reported on the 16th, podoliyak said in an interview that Ukrainian and Russian leaders are expected to have a direct dialogue on the ceasefire in the next few days. “We are very confident that a ceasefire agreement will be reached in the next few days.”. He said that the only way to end the war is the direct dialogue between the Ukrainian and Russian presidents, which is also the goal of the current negotiations between the two sides. The two sides are drafting relevant documents for discussion and signing by the two presidents.
US President Biden signed a memorandum on 16 July, entrusted Secretary of state Blinken to authorize the US Defense Department to provide us $800 million worth of arms aid to Ukraine. Biden said that the assistance includes 800 air defense systems, 9000 anti armor weapons, 7000 light weapons such as machine guns, shotguns and grenade launchers, 20 million rounds of ammunition including artillery and mortar shells and UAVs. On the same day, Sullivan, assistant to the president of the United States for national security affairs, talked on the phone with Patrushev, Secretary of the Security Council of the Russian Federation, to discuss the situation in Ukraine.
For Hong Kong stocks, China International Capital Corporation Limited(601995) the research view is that the signal of policy stability maintenance is emerging, and the sharp decline of short-term liquidity impact may come to an end temporarily. After the recent continuous correction, according to historical experience, the possibility of short-term rebound in the market has also increased accordingly. The rebound on Wednesday is a similar situation. Looking ahead, the agency tends to believe that the short-term market may still be repeated, but the stage similar to the sharp decline in the early stage may have ended, and the subsequent stage may gradually enter the bottom grinding stage. In the follow-up, it is more important to grasp structural opportunities and select stocks according to the internal and external situation, including the geopolitical situation, the interpretation of stagflation, China US relations, China’s steady growth and real estate industry, and the progress of the epidemic. Compared with a shares, Hong Kong stocks have some external and regulatory disturbances, but considering the lower valuation and more sufficient emotional venting, it is also too pessimistic at the current level. If the follow-up policy stability maintenance signal and the external environment improve, Hong Kong stocks may still have greater flexibility. In the medium and long term, the Chinese market is expected to show relative resilience. China is in a relatively favorable growth and policy cycle, and there is relatively sufficient policy space for “steady growth”. Compared with a shares, the attraction of Hong Kong stocks lies in lower value, higher dividend yield (such as banking and Telecommunications) and high-quality growth targets, especially those killed by mistake in the sharp decline.
Generally speaking, China International Capital Corporation Limited(601995) it is suggested to pay attention to some value stocks (such as finance) with both stable growth and high dividend and high-quality growth with matching valuation earnings, so-called “dumbbell” strategy.
Everbright Securities Company Limited(601788) ‘s research point of view is that the bottom of Hong Kong stocks has appeared, and we should pay attention to follow-up investment opportunities. With the normalization of antitrust in the Internet industry and the gradual passivation of market sentiment, the core competitiveness of the Internet sector of Hong Kong stocks remains unchanged and still has investment performance price ratio. At the same time, the oversold rebound of large science and technology network leaders is expected to drive the overall recovery of Hong Kong stock market. After the market sentiment has been repaired, zhonggai shares may return to fundamental pricing. At present, the overall valuation of the Hong Kong stock market is close to the historical average, the forward PE valuation falls below the historical average, the overall valuation is low globally, and the investment value is prominent. However, after the oversold rebound is repaired, investors still need to pay attention to the impact of the global stagflation risk caused by the subsequent evolution of the conflict between Russia and Ukraine on the Hong Kong stock market.
