U.S. stocks fell again overnight, and A-Shares continued their independent market today (May 20). Shanghai and Shenzhen stock markets opened higher and went higher, then rushed higher and fell back, and rose again after shock and recovery, continuing the strong pattern throughout the day.
As of the close of Shanghai and Shenzhen stock markets all day, the Shanghai index rose 1.6% to 314657 points; The Shenzhen Composite Index rose 1.82% to 1145453 points; The gem index rose 1.69% to 241735.
From the disk point of view, the general rising market reappeared, the industry and the concept sector went long hand in hand, and the market profit-making effect soared. In terms of industries, coal, non-ferrous metals, wine making, logistics, tourism hotels, beauty care, food and beverage, airports, photovoltaic, petroleum, medical devices, automobiles and other industries led the increase; In terms of theme stocks, outdoor camping, blade batteries, condiments, scarce resources, e-cigarettes, Baijiu, online tourism, beer concept, express concept and other concepts rose higher.
In terms of capital, according to the news on the central bank’s website on the 20th, in order to maintain the reasonable and abundant liquidity of the banking system, the people’s Bank of China launched a 10 billion yuan reverse repurchase operation by means of interest rate bidding on May 20, 2022.
hot sector
Top 10 gainers in industry sector
Top 10 industry sector declines
Top 10 gainers in concept sector
Top 10 decline in concept sector
individual shares monitoring
Top 10 net inflow of main forces
Top 10 net outflow of main force
northbound funds center / center
southbound funds
message surface
1. According to the report of securities firm China, LPR was finally lowered again after four months. On May 20, the latest published loan market quoted interest rate (LPR) results showed that the one-year LPR was 3.7%, unchanged from the previous time; Varieties with a maturity of more than 5 years reported 4.45%, up from 4.6% last time, down 0.15 percentage points from the previous time.
2. According to the website of the CSRC, in order to implement the securities law and steadily promote the reform of cash versus delivery (hereinafter referred to as DVP), the CSRC officially issued the revised Measures for the administration of securities registration and settlement (hereinafter referred to as the measures), which will come into force on June 20, 2022. The release and implementation of the measures marks a new stage of DVP reform. Next, the CSRC will guide China Securities Depository and Clearing Co., Ltd. to organize the implementation of business and technology related to the reform.
3. According to the securities times, the State Administration of foreign exchange issued relevant measures to further promote the foreign exchange market to serve the real economy. The notice proposes to add RMB to foreign exchange ordinary American options, Asian options and their portfolio products to the customer’s foreign exchange market. Financial institutions that have qualified for customer option business can carry out the above new product business on their own. When handling RMB to foreign exchange derivatives business for customers, financial institutions can flexibly choose trading mechanisms such as reverse position closing, full or differential settlement according to the actual needs of customers’ foreign exchange risk management. The reference price used to determine the settlement amount shall be the real and effective market exchange rate in China.
4. According to the securities times, the general office of the State Council issued the national health plan for the 14th five year plan. The plan proposes to implement the three child fertility policy and improve relevant supporting measures. We will continue to ensure maternity insurance for female employees’ maternity medical expenses and maternity allowances, and ensure the maternity medical expenses of urban and rural residents’ medical insurance insured, so as to reduce the burden of maternity medical expenses. Do a good job in reproductive counseling and guidance services. Promote the joint office of “one thing at birth”. Improve the national life registration management system, establish an index system for long-term balanced population development, and improve the population monitoring system and prediction and early warning system covering the whole population and life cycle. Give full play to the organizational role of family planning associations and carry out in-depth actions to promote family health. We will continue to implement the current reward and assistance system and preferential policies for single child families and rural family planning families with two daughters before the implementation of the comprehensive two child policy.
institutional views
For the current market, Bohai Securities said that in the medium and long term, performance, valuation, policies and other factors are generally beneficial to the market. In the short term, the market shows a shock process after a rapid rebound. Although the peripheral index is still under great pressure, the Chinese index shows a certain resistance to decline. If the index does not break in the consolidation adjustment, it will accumulate more strength for the upward attack in the next stage. It is suggested to be patient and select and allocate stocks from a medium – and long-term perspective in the process of market consolidation.
It is noteworthy that Guosen Securities Co.Ltd(002736) mentioned that the 15 BP reduction of LPR interest rate over 5 years is good for the direction of A-share market, but it is not in the aspect of financial market liquidity, but in the logic of medium-term promotion of economy and corporate profits by relaxing the traditional economy. After the RRR reduction in April, the money market interest rate has fallen rapidly and has continued to be below the 7-day reverse repo rate. Although the one-year interest rate has not been reduced this time, it is also a relatively comfortable environment for A-share liquidity. After the five-year interest rate has been lowered, the real estate chain should be expected to promote the economy, and pay attention to the anchoring effect of the bottom rebound of profits on the inflection point of a shares. The industry can consider the large financial sector of “stable growth” as the defense, and the catering tourism and air and land transportation of “dilemma reversal” as the counter attack.
Zhongtai Securities Co.Ltd(600918) believes that in terms of asset allocation, historically, interest rate cuts have often led to a phased decline in bond yields. However, this five-year LPR interest rate adjustment is large, but MLF interest rate has not been reduced at the same time, which means that banks have to absorb most of the cost of interest rate cuts. In the case that the cost of capital has not decreased, and the policy effect is focused on driving the improvement of real estate to stabilize the economy, the bond market may face adjustment pressure, and it is still recommended to be cautious in the short term. Relatively speaking, the equity market may benefit more. If the follow-up trend of the epidemic does not change, and with the improvement of basic data such as real estate sales and investment, the “de inventory” of real estate enterprises may drive the improvement of optional consumption in the later cycle.
Previously, Guosheng Securities pointed out that although the epidemic in April had some adverse effects on China’s economy, the fundamentals of China’s stable and long-term economic growth have not changed, and A-Shares still have the conditions for shock rebound in the near future. The rebound is mainly driven by the fact that China’s epidemic has gradually entered a controllable and ending stage, and the resumption of work and production and normalized prevention and control measures have boosted market confidence; It also comes from overseas pessimism about raising interest rates has reached a stage high. If the Fed’s speech is slightly dovish, the global market rebound is imminent. With the accelerated implementation of economic support policies, the pessimistic factor of A-Shares is expected to gradually subside, and the capital may accelerate the return to the stock market. It is suggested to maintain a balanced allocation in which the growth is slightly greater than the value in terms of investment.
In terms of operation strategy, we should still control the overall position before the effective upward breakthrough in the market, which is suitable for low absorption. The “stable growth” in the post epidemic era will become the main logic driving the operation of the market. We should pay attention to the undervalued real estate and infrastructure chain with both attack and defense, and benefit from the consumption core assets gradually improved by China’s epidemic. It is suggested to properly layout the theme sectors such as logistics, military industry and semiconductor in combination with performance and cost performance.
