Market Overview
Shanghai and Shenzhen stock markets were dominated by narrow shocks in the morning and down in the afternoon. On the disk, the pig industry and chicken industry, which rose sharply yesterday, led the decline, and the performance of household appliances was also poor. In addition, new energy continued to callback; Phosphorus chemical industry, soda ash and other chemical sectors performed well, and the bank also strongly protected the market. The market profit-making effect was poor, and more than 2800 stocks in the two cities fell. The turnover of the two cities was more than 10000 billion yuan, exceeding trillion yuan for the eighth consecutive trading day.
The current index fluctuates at a high level. The sectors with large increase in 2021 and high current valuation continue to adjust, while the sectors with undervalued value and stable performance generally perform better. It is recommended that the Baijiu, dairy, household appliances, banks and other cost-effective plates with outstanding performance and profitability be improved. Short term focus on the banking sector. At the profit level, loans in real estate related fields account for a high proportion of bank loans on the balance sheet, while the recent relaxation of real estate financing is conducive to the improvement of bank profits, and the recent performance forecast net profit growth data of many banks in 2021 is good; At the valuation level, the overall increase of the banking sector in 2021 is low, and the current valuation is relatively low, with a high margin of safety when the market falls.
