On May 23, China Merchants Fund pointed out that from the current situation, A-Shares will remain volatile in the short term, but the subsequent risk appetite will gradually pick up. With the improvement of the epidemic situation and the orderly progress of resumption of work and production, the economic fundamentals are expected to continue to warm up, and steady growth is still the main line of market investment.
China Merchants Fund analysis pointed out that the market probability in the second quarter ushered in the bottom of profit. In the short term, with the boost of relevant policies, consumption fields such as new energy vehicles and household appliances, new infrastructure fields such as wind and solar electric fields and digital infrastructure, as well as large real estate fields have benefited. Under the main line of "steady growth", the follow-up will focus on the banking, real estate and infrastructure sectors. In addition, referring to the relay between industries under the policy cycle of "stable growth" in history, the large consumption sector, including food and beverage, agriculture, forestry, animal husbandry and fishery and social services, is also expected to gradually usher in better allocation opportunities.
In terms of Hong Kong stocks, China Merchants Fund believes that the early valuation adjustment of Hong Kong stock market basically reflects the mood at home and abroad, and the following sectors with long-term growth logic can be gradually configured: first, the power operator sector; Second, the internal circulation consumption sector; Third, communication operators; Fourth, the information and communication sector; Fifth, after this round of adjustment, the valuation of some high-quality new economy companies has returned to reasonable and has long-term allocation value. In addition, from a medium - and long-term perspective, Hong Kong stocks and Chinese stocks have high profit certainty and obvious advantages of undervaluation. They are optimistic about the new economic sector with asset scarcity in Hong Kong stocks and the sector benefiting from the return of Chinese stocks for a long time.
