Index
On Monday, April 25, 2022, as of the closing, the Shanghai stock index fell 5.13% to 292851 points, the Shenzhen Component Index fell 6.08%, and the gem index fell 5.56%. The turnover between the two markets was 896.9 billion yuan, and the northbound capital sold a net 4.397 billion yuan today.
Comments
The Fed’s interest rate hike, the devaluation of the RMB, the unabated inflationary pressure on the global economy, and the increased expectation of the impact of the Chinese epidemic on the economy led to the amplification of market panic again and the collective sharp decline of the three indexes. We believe that there is no need to be too pessimistic about the future market. The medium and long-term allocation value of A-Shares has been highlighted. The main reasons are as follows: 1. The central bank announced to reduce the foreign exchange deposit rate, which can reverse the unilateral decline of the RMB exchange rate, and bring hedging response to the proposed interest rate increase in the United States in the future; 2. Compared with the impact of overseas disturbance factors, the downward pressure on China’s economy is more from the impact of the epidemic. At present, the main epidemic areas have orderly promoted the resumption of production and work, creating favorable conditions for economic recovery. When the epidemic situation is significantly improved, the market’s expectation of investment and economic recovery will be repaired. Throughout the year, steady growth is still the core logic, and the opportunities of related industries driven by accelerated infrastructure investment are the direction with high certainty throughout the year.
Industry dynamics
The China Banking and Insurance Regulatory Commission and the Ministry of transport issued the opinions on the banking and insurance industry supporting the high-quality development of highway transportation. The opinions encouraged banking and insurance institutions to provide financial support for qualified green low-carbon highway projects and help the transportation sector achieve carbon peak and carbon neutrality. Support transportation enterprises to effectively revitalize the highway stock assets through asset securitization (ABS) and real estate investment trusts (REITs) in the field of infrastructure under the premise of legal compliance and controllable risk. Support insurance companies to participate in highway transportation construction. Give full play to the advantages of large-scale, long-term and high stability of insurance funds, and encourage insurance institutions to participate in the construction of major highway transportation infrastructure, new transportation infrastructure and other projects in the form of creditor’s rights, equity, combination of equity and debt, asset support plan and private fund. (website of China Banking and Insurance Regulatory Commission)
Company dynamics
Shanghai Tunnel Engineering Co.Ltd(600820) ( Shanghai Tunnel Engineering Co.Ltd(600820) ): the company plans to distribute profits in 2021 based on the total share capital of 3144096094 shares registered on the date of equity distribution. The profit distribution plan is as follows: Based on the total share capital registered on the date of equity distribution and equity registration, a cash dividend of 2.30 yuan (including tax) will be distributed for every 10 shares. As of December 31, 2021, the total share capital of the company is 3144096094 shares, and the total distributed profit is 72314210162 yuan. No bonus shares will be given for this profit distribution, nor will the capital reserve be converted into share capital. The remaining undistributed profit of 1268270662334 yuan is carried forward to subsequent years. The cash dividend ratio of the company in this year is 30.22%. （iFinD）
Risk warning: the implementation of the policy is less than expected; The price rise of raw materials exceeded expectations; The epidemic affected the economy more than expected.
