Macro
The central bank’s RRR reduction is intended to stimulate the vitality of micro entities by promoting the decline of comprehensive financing costs. The 25 basis point general reduction can not only avoid excess liquidity, but also reserve policy space for the future. Lowering the reserve requirement before the Fed accelerates tightening can alleviate the pressure of RMB exchange rate depreciation and capital outflow. At the same time, the RRR reduction has further strengthened the market expectation at the end of the policy, and the equity market is expected to gradually get out of the repair market in the shock. Looking ahead, the central bank is expected to continue to launch a number of policy combinations to guide the decline of LPR and social comprehensive financing costs.
Tactics
With the emergence of a series of positive events such as the reduction of reserve requirement by the central bank, the pressure drop of deposit interest rate and the improvement of the epidemic situation, investor sentiment is expected to gradually repair. The disclosure of the first quarterly report with relatively high performance growth during the year may also bring a certain degree of fundamental support to the market. From the perspective of overseas laws, relevant beneficiary industries will generally perform better after the epidemic improves. After the current round of epidemic is controlled, consumption and steady growth may still be the main line of the rebound.
Metalworking
This week, the market continued the low shock trend, and the weighted index maintained a bullish view. In terms of valuation, CSI 500 and CSI 1000 are at the “safety” level of valuation quantile. Electricity and public utilities, automobiles, commercial retail, consumer services, food and beverage, and media are at the “dangerous” level of the valuation quantile. From the perspective of capital in the north, the allocation of panjiacang power equipment, new energy, banks and non-ferrous metals, and the net sales of medicine, machinery and transportation; The trading volume increased positions in electronics, real estate and non-ferrous metals, with net sales of medicine, agriculture, forestry, animal husbandry, fishery and media.
Metalworking — quantification
This week, the market momentum effect is significant. In terms of major factors, the profit factor continued its excellent performance and achieved a positive return of 0.25%. The scale factor gains 0.25%, and the non-linear market value factor gains – 0.32%. The market shows a large market value effect. In terms of single factor performance, the overall performance of factors in the liquidity 1500 stock pool is better. Pb-roe-50 portfolio is stable in each stock pool. The excess return of CSI 500 was 1.49%, the excess return of CSI 800 was – 0.21%, and the excess return of the whole market was 0.36%.
Metalworking
Since April, the net inflow of equity ETFs has exceeded 20 billion yuan, adding positions against the trend and oversold growth style. Solicit public opinions on the raising rules of REITs for public offering of infrastructure, and clarify the mechanism arrangements related to the raising of REITs. Huaxia China Communications Construction Company Limited(601800) reit’s placement ratio was 0.84%, breaking the record of the lowest placement ratio of public funds in history. The issuance share of new funds decreased this week, with a total of 9.545 billion shares, with an average of 502 million shares. Most fund indexes closed down, and consumer themed funds performed prominently.
