Today, it fell below the integer mark of 3000 points, and investors were in tears.
Today, many A-share related topics fell into hot search. The three major A-share indexes opened low and closed low on concerns about the radical interest rate hike by the Federal Reserve, the severity of the mainland epidemic again, and the continued weakening of the RMB.
A shares not only fell below 3000 points, but also went all the way down. As of the closing, individual stocks showed a general downward trend. More than 4600 shares in the two cities floated green, and more than 1800 shares in the two cities fell by more than 9%. Today’s transaction reached 896.9 billion yuan. As of the close, the Shanghai index fell 5.13%, the Shenzhen composite index fell 6.08% and the gem index fell 5.56%. The net sales of northbound funds were 4.397 billion yuan.
Nearly 700 shares fell by the limit, only 149 companies in the two cities rose, and more than 4600 companies fell
In terms of focus stocks, several leading stocks were smashed, and Contemporary Amperex Technology Co.Limited(300750) is now down 6.08%. The share price has fallen below the 400 yuan mark, hitting a new low. The disclosure time of the company’s first quarter report was postponed to April 30 China Merchants Bank Co.Ltd(600036)
Zhongrong Fund said that the main factors leading to the recent decline of A-share market are:
First, China’s epidemic has led to economic weakness, less than expected policy relaxation, and damage to the supply chain, resulting in difficulties in the operation of some enterprises.
Second, the direction of China US monetary policy is opposite, resulting in the narrowing of China US interest rate spread, market concerns about capital outflow, and the decline of asset prices priced by RMB. In addition, there are some technical factors.
However, at the current time point, we believe that the market has relatively limited room for decline in the future and will gradually improve in the future. Because:
In terms of the epidemic situation, Jilin Province has achieved zero social aspects, and various production activities have gradually returned to normal. The number of new people per day in Shanghai has gradually decreased after April 13. At present, it is being strictly sealed and controlled to promote the “crucial battle” to clear the social surface. It is expected that the social aspect will be cleared at the end of April and early May, and then the logistics will be restored, the enterprises will resume work and production in an all-round way, and the investment and consumption will improve. Other cities can effectively curb the spread of the epidemic because they take timely measures.
In terms of interest rate spread between China and the United States, from historical experience, the central bank has various policy tools to curb capital outflow and maintain the stability of RMB asset prices.
In the long run, the direction of China’s economic transformation and the rise of science and technology is very clear. The current decline is only a small episode in the great historical process. From the perspective of valuation, at present, the valuation of many industries such as new energy, new energy vehicles, automobiles, machinery, military industry, medicine, food and beverage has returned to a low level, and some even returned to the level at the end of 2018, which has investment value. Therefore, there is no need to be overly pessimistic at the current point in time.
Huaxia Fund said that the current A-share operating environment is relatively complex and short-term uncertainties continue to disturb. Internally, the epidemic is still under control, and the risks emanating from multiple points have aroused concern. At the same time, the downward pressure on economic fundamentals is more obvious in stages; From the periphery, the expected process of us tightening is accelerated, US bond yields continue to rise, and the short-term decline of RMB exchange rate also puts pressure on the market
China Merchants Fund believes that the A-share market began to respond to the risk of global economic recession and entered the risk aversion mode. First, China has formed a new economic shock, and sealing and control measures have appeared in key cities. Second, under the background of “no speculation in housing and housing” and “local government implicit debt control”, the transmission of wide currency, wide credit and profit bottom is not smooth, and the recovery of economic bottom and A-share profit bottom takes longer. Third, the liquidity collapse has led to a sharp rise in the correlation of various assets. The core reason behind this is that the hidden worries of the global economic recession have begun to appear, Global trade activities have begun to slow down, the United States has sharply suppressed demand in order to control inflation, and the rise of US interest rates has widened the interest rate spread between commercial paper and junk bonds. Superimposed on the depreciation of RMB, the instability of transaction structure has increased significantly. Therefore, the A-share market has experienced a broad-spectrum decline.
RMB exchange rate falls below the 6.55 mark
Not only the A-share market fell, but also the RMB exchange rate continued to depreciate. On April 25, the onshore RMB fell below the 6.55 mark against the US dollar, once falling more than 600 basis points within the day, and the offshore RMB fell below the 6.59 mark, falling more than 600 points within the day.
Gf Securities Co.Ltd(000776) according to the analysis, the growing expectation that the economic and financial cycles of China and the United States deviate from the widening trend is the reason for the rapid depreciation of the RMB exchange rate this week. In addition, the three-month real interest rate difference between China and the United States, which supports the RMB exchange rate, also has an inflection point. In the short term, there is still pressure on the RMB exchange rate to depreciate, but there is support in the medium term: (1) with the improvement of epidemic prevention and control in China and the decline of economic growth in the United States, the economic split between China and the United States will ease; (2) At present, the balance of foreign exchange deposits of financial institutions has a trend value of about 300 billion to be settled. Enterprises can choose the opportunity to settle foreign exchange, which is conducive to the smooth operation of the foreign exchange market.
China Merchants Securities Co.Ltd(600999) analysis shows that the devaluation of RMB exchange rate has become a new concern in the market. However, we believe that the devaluation of RMB exchange rate does not necessarily bring capital outflow. The core depends on China’s economy and enterprise profit expectations. The accelerated improvement of new social finance is the watershed of the impact of devaluation on a shares. China’s economy is weakening, and the devaluation of exchange rate is more likely to cause concerns about capital outflow. After the accelerated improvement of new social finance, The depreciation of the exchange rate is more likely to be seen as a signal conducive to the improvement of China’s exports. In March before the devaluation, northbound funds had an obvious outflow of A-Shares in advance. However, the recent accelerated depreciation of RMB against the US dollar did not cause greater fluctuations in northbound funds. Instead, the market paid more attention to which industries benefited from the devaluation of the exchange rate.
China commodity futures closed down generally and Zheng alcohol’s main contract fell by the limit
China commodity futures closed generally lower, Zheng alcohol’s main contracts fell by the limit, iron ore fell by more than 7%, soda ash, Shanghai tin and ferrosilicon fell by more than 6%, pulp and eg fell by more than 5%, manganese silicon and SS fell by more than 4%, hot coil and Lu fell by more than 3%, cotton yarn and coke fell by more than 2%, fuel oil and rapeseed meal fell by more than 1%, Zheng cotton and peanut fell slightly; Eggs rose more than 4%, palm oil rose more than 1%, and pigs and urea rose slightly.
peripheral markets are also falling sharply
European stocks opened sharply lower. The European Stoxx 50 index once fell 2%, the French CAC40 index fell 1.3%, the German DAX index fell 1.4% and the UK FTSE 100 index fell 1.3%.
Sri Lanka’s stock market stopped trading as the main index fell sharply.
Vietnam VN index fell 5%
Beijing Chaoyang improves control measures residents in some areas cannot leave the area
According to the Beijing Chaoyang client information, Chaoyang District New Coronavirus pneumonia epidemic prevention and control work leading group office 25 issued the “Chaoyang District part of the region to enhance control measures notice”, “notice” request, the residents in the region can not be out of the area, residents of the community strictly scan code, temperature measurement, registration and other prevention and control measures, not necessarily out of the district.
The specific notice is as follows:
In order to curb the spread of the epidemic and ensure the health and safety of the people, the following notice is hereby issued on the improvement of control measures in some areas of Chaoyang District:
I. regional scope
Temporary control scope: the enclosed area to the east of the East Second Ring Road, the west of West Dawang Road, the north of Huawei South Road and Songyu South Road, and the south of Guangqu road.
Temporary control scope
II. Improvement measures
\u3000\u30001. The residents in the area cannot leave the area and the community residents strictly implement the code scanning, temperature measurement, registration and other prevention and control measures, do not leave the community unnecessarily
\u3000\u30002. Employees of units in the area in principle, work at home . The daily security personnel really needed in the office shall be subject to closed management.
\u3000\u30003. welfare institutions and elderly care service institutions in the region are under closed management . Catering enterprises, bathing, KTV, chess and card rooms, foot therapy shops, Internet cafes, entertainment places, indoor sports and fitness places, cinemas, libraries, art galleries, museums, etc. will be closed.
\u3000\u30004. Urban operation service support staff, community workers and medical and health personnel in the region provide services to community residents on the basis of strict personal protection and epidemiological history investigation.
\u3000\u30005. Supermarkets, hospitals and other places necessary for basic life in the region are operating normally, and relevant epidemic prevention regulations such as code scanning, temperature measurement and wearing masks are strictly implemented to prevent crowd gathering.
\u3000\u30006. area personnel conducted two nucleic acid tests on April 25 and 27, and the temporary control was lifted after they were negative. On the 29th, they continued to participate in nucleic acid testing according to the requirements of society
III. The prevention and control measures of the existing sealing and control areas in the region remain unchanged
Bless investors.
