Market trend:
The market fluctuated and fell throughout the day. The three major indexes all fell by more than 2%. The Shanghai Composite Index fell below the 3100 point integer mark, and the Shenzhen Composite Index and the gem index hit a new low. On the disk, only the textile manufacturing sector rose, and all the other sectors fell. The brokerage sector once rose in the afternoon, but finally fell. In addition to the more than expected impact of the Shanghai epidemic on the national economy, the short-term depreciation expectation of RMB is the main factor for the recent market weakness. The performance of SSE 50 is still resistant to decline today, and small cap stocks are more vulnerable under the influence of low-risk preference.
In terms of sectors, we will focus on tracking three sectors today:
First, the consumption sector; Today, both Better Life Commercial Chain Share Co.Ltd(002251) and Anji Foodstuff Co.Ltd(603696) are trading, and their trends are significantly stronger than the market. On the news front, Gao Feng, a spokesman for the Ministry of Commerce, said that on the whole, the fundamentals of China’s long-term economic growth have not changed, and the characteristics of the consumer market with great potential and strong resilience have not changed. With the gradual stabilization and control of the epidemic in Shanghai and the strength of consumption support policies, consumption is expected to further recover. At present, the large consumption sector, especially the required consumer goods, still has the attributes of defense and anti inflation. Second, the logistics sector. In today’s logistics sector, San Yang Ma (Chongqing) Logistics Co.Ltd(001317) bucked the market and pulled up. The improvement of logistics efficiency is related to market stability and price stability. National market integration also helps to improve the prosperity of the logistics industry. The sector has been active repeatedly recently, so we can look for low absorption opportunities. Third, the textile and garment sector. In the context of the devaluation of the RMB exchange rate, textile and garment enterprises have benefited significantly. The sector is also significantly stronger than the market today, and it is expected to continue to be strong in the short term.
Outlook:
At present, under the expectation of RMB devaluation, the market sentiment is very pessimistic. Many strong sectors in early trading, such as agriculture, made up for the decline, but the short-term sentiment did not affect the long-term improvement of the market; China’s long-term capital needs to enter the market. In terms of news, the opinions of the general office of the State Council on promoting the development of individual pensions was released on April 21. The CSRC said on the same day that in the next step, it will speed up the formulation and introduction of supporting rules and systems for individual pension investment in public funds, improve the construction of infrastructure platform and optimize the market environment for medium and long-term funds; Continue to strengthen the supervision of institutions and employees, improve the management ability and standardized operation level of managers, strengthen investor protection, ensure the safety and standardization of pension investment and operation, and promote the high-quality development of individual pensions. In addition, Gao Feng, spokesman of the Ministry of Commerce, said at a regular press conference that promoting the integration of domestic and foreign trade is an important decision and deployment made by the CPC Central Committee and the State Council. The Ministry of Commerce will make joint efforts with the member units of the inter ministerial working mechanism, with the goal of unblocking China’s international double cycle, strive to remove the institutional obstacles to the integration of domestic and foreign trade, and help market players make full use of China’s international markets and resources to realize the efficient operation of domestic and foreign trade. The transfer of exports to domestic sales will accelerate the breaking of market barriers and contribute to the further clearing of China’s backward production capacity; It is good for increasing the long-term competitiveness of products.
