General situation
Macro Liquidity: 1 Last week, the net investment of reverse repo was 420 billion, and MLF did not operate; 2. In terms of market interest rate, dr007 decreased slightly to 1.79% and R007 decreased to 1.83%; 3. The yield of 10-year Treasury bonds fell to 2.77%; 4. The US dollar fell to 6.35 against the RMB; 5. The expected rate of return of financial products (three months) is maintained at 1.92%.
Capital and sentiment of A-share market: 1 Last week, the turnover of A-Shares decreased and the turnover rate remained unchanged; 2. The balance of the two financial institutions decreased slightly to 1.67 trillion; 3. A substantial net inflow of funds from northward travel was 22.9 billion yuan; 4. Last week, the scale of A-share net reduction and repurchase increased significantly, and the scale of sales restriction and lifting this week decreased; 5. In terms of style, large cap stocks, low PE stocks, low-cost stocks and low profit stocks performed best last week.
A-share and global Valuation: from the perspective of pb-roe, the industries with valuation level far lower than profitability last week were banking, steel, building decoration, coal, non bank finance, petroleum and petrochemical, building materials, transportation, household appliances and light industry manufacturing.
