Market review: the index fluctuated in a narrow range, led by communications and military industrial real estate
Today’s index fluctuated narrowly throughout the day. As of the close, the Shanghai index rose 0.34% to 327103, the Shenzhen index rose 0.73% to 1240865, and the gem index rose 1.03% to 271595. SSE 50 rose 0.54% and CSI 1000 rose 0.63%. In terms of sectors, beauty care (2.85%), communications (2.84%), national defense and military industry (2.01%) and real estate (1.84%) led the increase, while banks (- 0.68%), light industry manufacturing (- 0.65%) and transportation (- 0.59%) led the decrease. The turnover of the two cities was 942817 billion yuan, a decrease of 2.08% compared with the previous trading day and 13.28% compared with the average value of the previous five days. Northbound funds sold a small net 194 million yuan throughout the day, including 1.491 billion yuan for Shanghai Stock connect and 1.297 billion yuan for Shenzhen Stock connect.
Market focus:
Zte Corporation(000063) received the judgment of the U.S. court, and the five-year compliance observation period since 2017 ended Zte Corporation(000063) stated in the announcement that it is committed to building a world-class compliance enterprise, adhere to taking compliance as the cornerstone of strategic development and the bottom line of operation, abide by the applicable laws and regulations of the country where the business is located, and comprehensively carry out the construction of compliance system Zte Corporation(000063) said that the company is full of confidence in the effective operation and continuous improvement of the compliance management system, will continue to fulfill its responsibilities to global customers, employees, shareholders and partners, and actively promote the innovation and sustainable development of the global ICT industry.
Strategy suggestion: focus on hydrogen energy and 5g communication industry
The index fluctuated in a narrow range throughout the day, with a rise / fall ratio of 23082245. The net outflow of main capital was 1.242 billion yuan, and the main capital mainly flowed into track stocks such as medicine and biology, new energy, 5g and new infrastructure.
In terms of sectors, the performance of beauty care, communication, national defense and military industry, real estate and other sectors is relatively strong today, with the highest increase. The hydrogen energy sector was greatly boosted by the release of the medium and long term plan for the development of hydrogen energy industry (20212035). The development goal proposes that the number of fuel cell vehicles in China will reach about 50000 in 2025, and the number of hydrogen fuel cell vehicles in China will only be 7352 in 2020. The industry market space is expected to be significantly improved. It is suggested to pay attention to fuel cell head enterprises with perfect production capacity and production line.
In terms of communication sector, Zte Corporation(000063) since the end of the five-year compliance observation period starting in 2017, the improvement of short-term sentiment will help the industry realize valuation repair. At present, the price earnings ratio TTM of Shenwan communication industry is 36.66 times, which is at the quantile of 26.93% in recent five years. It has the opportunity of sector layout. The Ministry of industry and information technology, the national development and Reform Commission and other departments have made it clear that 5g, data center and other new infrastructure construction will be deployed moderately in advance; China Mobile, China Telecom Corporation Limited(601728) , China Tower and other equipment have huge capital expenditure. It is suggested to pay attention to the valuation depression opportunities of companies related to communication construction, operation and maintenance and data center.
The real estate sector continued yesterday’s performance. The China Banking and Insurance Regulatory Commission held a special meeting on the 16th of last week to convey, study and implement the spirit of the meeting of the financial committee of the State Council, require banking and insurance institutions to actively promote the transformation of the development mode of the real estate industry, encourage institutions to carry out M & A loans in a stable and orderly manner, focus on supporting high-quality real estate enterprises to merge and acquire high-quality projects of difficult real estate enterprises, and promote the virtuous cycle and healthy development of the real estate industry. At the same time, the relevant person in charge of the Ministry of Finance said that there were no conditions for expanding the pilot cities of real estate tax reform this year. Signs of improvement in the upstream and downstream of the real estate industry still deserve attention.
