After a continuous decline in March and April, the A-share market showed signs of stabilizing in May, but the market hesitated due to external factors. In fact, after early adjustment, many stocks began to rebound at the bottom, and block trading data is one of the channels to gain insight into the main capital trends of the market. Since the May Festival, as of May 18, institutional investors have purchased more than 5 billion through block trading platforms, of which the purchase of Yunnan Botanee Bio-Technology Group Co.Ltd(300957) exceeded 2.3 billion.
A-Shares opened lower and went higher today
After a continuous decline in March and April, the A-share market showed signs of stabilizing in May, but the market hesitated due to external factors. Last night, the peripheral U.S. stocks plummeted, and today encountered a special “5.19” day. From the disk, the A-share market opened low and walked high today, out of the independent market. From the perspective of the market, the performance of today’s A-share market is in sharp contrast to the sharp decline in the U.S. market. What are the reasons for the significant differences between China’s A-share market and the U.S. stock market?
Behind the trend differentiation of China and the United States stock markets is the differentiation of economic fundamentals. On the one hand, China’s economic expectations are constantly improving. There are no new covid-19 infected people in Shanghai for four consecutive days. Shanghai has given a clear plan for a comprehensive resumption of production and work. The probability of rapid economic repair in June is increasing. At the same time, the ministries and commissions said that they would continue to speed up the implementation of the policies that have been issued and will continue to play a positive role in supporting the economy. In the same period, the United States faced a complex environment in which high inflation forced interest rate hikes that could lead to recession. At present, various institutions are reducing the expectation of U.S. GDP growth. JPMorgan Chase and S & P have reduced the U.S. economic growth to 2.4%. Lei, chief research official of Xingshi investment, told reporters in wechat.
Yu Dingheng, general manager of Yihu investment, told reporters in wechat that the different stages lead to the differentiation of the trend of A-Shares and U.S. stocks. The essence of U.S. stocks is inflation, which kills the valuation, and it is a general decline in the market structure. US inflation is high, interest rate hikes are superimposed on the contraction of the table, and the adjustment of US stock market is not over.
Hu Po, manager of financial intelligence investment fund under paipai.com, told reporters in wechat that the major difference in fundamentals between the Chinese market and the US stock market is the main reason for the current performance difference between A-Shares and US stocks. The policy bottom of the Chinese stock market has been consolidated, the short power has been fully vented, and the epidemic situation has begun to improve marginally, which will help A-Shares get out of a relatively independent market. Affected by the uncertainty of the U.S. economy and the Fed’s interest rate increase and contraction, U.S. stocks may still have a large room for adjustment. There are great differences in these two aspects, which is also the main reason why A-Shares can open low and go high today.
In May, more than 5 billion yuan of institutional seats were cleared through block trading times
According to incomplete statistics, since May, as of May 18, institutional investors have shown obvious signs of purchasing goods on bulk platforms. The total amount of institutional seats has exceeded 5 billion, of which the purchase of Yunnan Botanee Bio-Technology Group Co.Ltd(300957) has exceeded 2.3 billion..
It is worth noting that in the block trading market, there has even been a phenomenon of institutional seats scrambling to raise one share for many times.
In the bulk platform trading on May 5, from the perspective of institutional seat purchase, some institutional seats bought Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 113 million yuan. Secondly, the purchase of institutional seats was Pylon Technologies Co.Ltd(688063) 74 million. In addition, institutional seats were purchased for Weichai Power Co.Ltd(000338) 68 million and Shandong Sinocera Functional Material Co.Ltd(300285) 43 million; On May 6, some institutional seats continued to buy Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 50 million, and some institutional seats bought Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) 39 million; In the block trading on May 9, institutional seats bought China Calxon Group Co.Ltd(000918) 41 million and institutional seats bought Walvax Biotechnology Co.Ltd(300142) 30 million. In the block trading on May 10, institutional seats bought Zhejiang Construction Investment Group Co.Ltd(002761) 252 million yuan, Weichai Power Co.Ltd(000338) 130 million yuan and Midea Group Co.Ltd(000333) 37 million yuan;
In the block trading on May 11, institutional seats bought Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 637 million yuan, Ming Yang Smart Energy Group Limited(601615) 198 million yuan, and institutional seats bought Pharmaron Beijing Co.Ltd(300759) 46 million yuan; In the block trading on May 16, institutional seats bought Wanhua Chemical Group Co.Ltd(600309) 6 billion yuan and Goertek Inc(002241) 113 million yuan; In the block trading on May 17, institutional seats bought Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 119 billion yuan and institutional seats bought Shenzhen Dynanonic Co.Ltd(300769) 293 billion yuan. Purchase Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) 205 billion yuan and 57 million yuan of No. 9 company; In the block trading on May 18, some institutions bought Yunnan Botanee Bio-Technology Group Co.Ltd(300957) 375 million yuan, others bought Shenzhen Dynanonic Co.Ltd(300769) 122 million yuan, Liaoning Port Co.Ltd(601880) 142 million yuan and Wanhua Chemical Group Co.Ltd(600309) 100 million yuan.
In addition, from the perspective of bulk platform premium rush to raise, for example, in the bulk trading on May 9, Suzhou Medicalsystem Technology Co.Ltd(603990) premium was 8.43% and 3Peak Incorporated(688536) premium was 7.88%. In the block trading on May 13, ST Giai’s block trading premium was 19.83%. In addition, the Taiyuan Heavy Industry Co.Ltd(600169) premium is 9.21%. In the block trading on May 16, Byd Company Limited(002594) ‘s block trading premium was 7.07%; In the block trading on May 18, Beijing Bayi Space Lcd Technology Co.Ltd(688181) premium was 15.21% and Greenland Holdings Corporation Limited(600606) premium was 10.66%.
what is the secret behind the fund-raising of institutions
What mystery is revealed behind the rush to raise institutional funds? Yu Xiaochang, research director and fund manager of Xiangju capital, told reporters in wechat that after the early adjustment, the valuation and risk premium of A-Shares are in a low position, and the fundamentals are also improving. Therefore, A-Shares will be less affected by the decline of US stocks. We are more optimistic about “growth + consumption”. Some high-quality stocks in the growing semiconductor, new energy, automobile and other sectors, whether from the perspective of growth or safety margin, are now in a relatively favorable buying time point.
Yu Dingheng told reporters in wechat that it is unlikely that A-Shares will fall sharply in the short term after preliminary adjustment. In the short term, the layout will focus on undervalued public utilities, strong reversal epidemic damaged stocks and stable growth concept stocks. The window period of the layout is long. Don’t rush to rebound, keep light positions and respond flexibly.
Fang Lei told reporters in wechat that under the background of continuous restoration of stock market confidence recently, the general trend of A-Shares dominated by me will continue to be maintained. Although fluctuations such as US stocks may have a certain impact on A-Shares through the emotional side, China’s fundamentals are still the main determinant of the medium-term trend of the stock market. At present, the gradual improvement of China’s macro environment is the biggest support for a shares. At present, there have been good investment opportunities in the science and technology growth sector. Since this year, the growth sector has suffered a relatively large decline, and the valuation end has been compressed to a more reasonable level. Many high-quality enterprises have been killed by mistake and oversold. From the perspective of liquidity, the time when the Fed accelerated the pace of interest rate hike and suppressed the valuation of growth stocks most may have passed. Looking back, it may be difficult to significantly improve the valuation of growth stocks again this year, but its medium and long-term high outlook and performance growth will support the performance of the sector.
Hu Po told reporters in wechat that there is still some uncertainty in the A-share itself, and the recent performance is more like a restorative rebound. The whole market lacks the profit of listed companies and strong long sentiment. Therefore, on the whole, the current market is still a restorative market with oversold rebound. Semiconductor, photovoltaic, automobile and other industrial chains, driven by the expectation of resumption of production and work, have become one of the main hot tracks in the recent game, so the overall performance is stronger than the market. However, we believe that although the relevant sectors in the current market have a certain allocation value, it may not be the time for heavy positions, and the bottom of the market must be a process of gradual running in.
