On April 25, the three major A-share indexes fell sharply, with a decline of more than 5% at the close. Among them, the Shanghai index fell below the integer mark of 3000 points, setting a new low since July 2020.
multiple factors combined to lead to decline
Yesterday, the three major indexes opened sharply lower and fluctuated downward. As of the close, the Shanghai composite index reported 292851 points, down 5.13%; Shenzhen composite index reported 1037928 points, down 6.08%; Gem index reported 216900 points, down 5.56%. The trading volume in Shanghai and Shenzhen was significantly higher than that in the previous two days.
On the disk, stocks generally fell, less than 200 stocks were popular in the two cities, and thousands of stocks fell by the limit or more than 10%. The industry sector ran out of ink, and the non-ferrous metal sector led the decline with an overall decline of more than 8%.
Western Securities Co.Ltd(002673) chief strategist Yi Bin believes that the disturbance of China’s epidemic, the approaching of the Federal Reserve’s interest rate meeting in May and the increasing pressure on the devaluation of the RMB exchange rate triggered the accelerated outflow of foreign capital, leading to a sharp decline in the market.
positive market signals continue to appear
In the context of market decline, some positive market signals are emerging.
On the same day, northbound funds sold a net 4.397 billion yuan, but during the accelerated decline of the index in the afternoon, the net outflow of northbound funds decreased. Finally, while the net outflow from the Shanghai Stock connect channel was 4.847 billion yuan, the Shenzhen Stock connect channel bucked the trend and bought 450 million yuan, indicating that some foreign capital has entered the layout on bargain hunting.
According to the data of the top ten active trading stocks after hours, Yunnan Energy New Material Co.Ltd(002812) net purchase volume ranks first, with an amount of 431 million yuan Ganfeng Lithium Co.Ltd(002460) , Sungrow Power Supply Co.Ltd(300274) respectively received net purchases of 264 million yuan and 125 million yuan.
From the perspective of the fundamentals of listed companies, the last ten days of April is the intensive disclosure period of financial reports, and some listed companies with better than expected performance have received capital attention.
After trading yesterday, some new energy track stocks released financial reports. According to the financial data, the leading photovoltaic company Tongwei Co.Ltd(600438) 2022 achieved a net profit of RMB 5.194 billion in the first quarter of 2022, with a year-on-year increase of 513.01%. In 2021, Tongwei Co.Ltd(600438) achieved a net profit of 8.208 billion yuan, a year-on-year increase of 127.5%.
Lithium battery concept stock Youngy Co.Ltd(002192) disclosed the first quarterly report, realizing an operating revenue of 478 million yuan in the first quarter of 2022, with a year-on-year increase of 339.46%; The net profit attributable to the shareholders of the listed company was 254 million yuan, a year-on-year increase of 1399626%.
In addition to track stocks, infrastructure leader China Jushi Co.Ltd(600176) achieved a year-on-year increase of 72.68% to RMB 1.836 billion in net profit in the first quarter, and handed over a bright “report card”.
In this regard, Guotai Junan Securities Co.Ltd(601211) securities strategy team said that at present, the “certainty of growth” of A-share market performance is better than the value of “growth” itself. It is suggested to focus on companies with undervalued value, performance and definite performance.
steady growth policy is expected to increase
More concerned by the market is that the implementation and effectiveness of practical measures and policies to stabilize expectations, confidence and growth will continue to boost market confidence.
In terms of news, after hours yesterday, the general office of the State Council issued the opinions on further releasing consumption potential and promoting the sustainable recovery of consumption, which put forward 20 measures in five aspects to comprehensively implement policies to release consumption potential and promote the sustainable recovery of consumption.
At the regular policy briefing of the State Council on the same day, Lin Xiaozheng, head of the securities fund institution Supervision Department of the CSRC, said that in the next step, the CSRC will earnestly implement the spirit of the opinions on promoting the development of individual pensions, and pay close attention to the relevant systems and rules of individual pension investment public funds in Taiwan under the overall guidance of the Ministry of human resources and social security.
In the view of Li Xunlei, the Zhongtai Securities Co.Ltd(600918) chief economist, stimulating domestic demand and making the internal circulation smooth is the premise to achieve steady growth. In the context of repeated outbreaks, how to correctly handle the relationship between the epidemic and economic development is the key to ensure smooth internal circulation and maintain growth.
Sealand Securities Co.Ltd(000750) chief strategist Hu guopeng said that at present, the indexes have gradually entered the value range and should not be overly pessimistic. The valuation quantile of each major index has been in a relatively cheap position. Among them, the Shanghai stock index and gem index are about 20% of the valuation quantile in recent 10 years, and all a are about 30% of the valuation quantile in recent 10 years.
Hu guopeng believes that “steady growth” is still the focus of policy efforts, and the implementation of greater macro policies to hedge the impact of the epidemic is the basis for achieving the annual economic goals. In addition, from the perspective of overseas disturbance factors, the strongest tightening expectation of the Federal Reserve was from May to June. At present, the market has set the price expectation in advance, and the actual rate increase amplitude and frequency of the Federal Reserve in the second half of the year will probably be lower than the current most extreme expectation.
