The A-share market will face an important test! On Friday, the global stock market was in a downturn and fell one after another. The US stock market fell sharply, especially the NASDAQ index of technology stocks plunged by more than 2.7%, and more than 1000 NASDAQ index components hit a new 52 week low. To make matters worse, one week before the Spring Festival, the A-share market ushered in a flood of lifting the ban of more than 190 billion yuan. How should A-shares deal with it next week?
Weekend Financial Highlights
1, the judicial interpretation of civil compensation for misrepresentation and infringement in the securities market was issued
Recently, the Supreme People’s Court issued several provisions of the Supreme People’s Court on the trial of civil compensation cases of misrepresentation infringement in the securities market (hereinafter referred to as several provisions). The promulgation of the “Several Provisions” is an important achievement in improving the basic system of the capital market. It helps to increase the cost of violations of laws and regulations in the capital market, urge all parties involved in the market to return to their duties, and safeguard the legitimate rights and interests of investors. It is of great significance to promote the comprehensive deepening reform of the capital market and form a good ecology of the capital market.
2, Shanghai Stock Exchange: actively do a good job in credit risk management of bond market
On January 21, the Shanghai Stock Exchange issued two special notices on bond business, namely, the notice on doing a good job in information disclosure of corporate bonds in 2022 and the notice on doing a good job in credit risk management of corporate bonds and asset-backed securities in 2022, which tightened the main responsibilities of issuers and intermediary institutions, and urged and guided them to actively do a good job in bond credit risk management.
3, seven departments issued documents to promote green consumption and vigorously promote new energy vehicles
According to the national development and Reform Commission on January 21, seven departments including the national development and Reform Commission recently jointly issued the implementation plan for promoting green consumption. The implementation plan specifies to vigorously promote new energy vehicles and gradually eliminate the purchase restrictions of new energy vehicles in various regions. We will carry out in-depth activities to bring new energy vehicles to the countryside.
4, ten departments: improve the service support capacity of electric vehicle charging infrastructure
According to the news from the national development and Reform Commission on January 21, ten departments including the national development and Reform Commission and the National Energy Administration recently issued the implementation opinions on further improving the service support capacity of electric vehicle charging infrastructure. It is clear that by the end of the 14th five year plan, China’s electric vehicle charging support capacity will be further improved to form a moderately advanced, balanced, intelligent and efficient charging infrastructure system, It can meet the charging demand of more than 20 million electric vehicles.
market review this week
1. Stock market
A-share market:
This week (January 17-21, the same below) A shares showed a shock sideways trend as a whole, reproducing the 28 differentiation pattern of Shanghai strong and deep weak, and heavyweights warmed up. The Shanghai Composite Index rose 0.04% weekly to 3522.57 points; The Shenzhen Component Index fell 0.86% to 14029.55 points, while the gem index fell 2.72% to 3034.68 points, a new low in nearly eight months.
It is noteworthy that although the market fluctuated and corrected for several consecutive days, and peripheral stock markets such as US stocks fell one after another, foreign investors continued to buy without wavering. This week, northbound funds bought net for five consecutive trading days, with a total net purchase amount of 29.197 billion yuan, realizing net purchase for the fourth consecutive week, and the best performance in a single week since December 10 last year. From the top ten active stocks, this week, China Merchants Bank Co.Ltd(600036) received the first net purchase amount of RMB 4.774 billion, followed by five stocks such as Ping An Insurance (Group) Company Of China Ltd(601318) , Kweichow Moutai Co.Ltd(600519) , Ping An Bank Co.Ltd(000001) , Eve Energy Co.Ltd(300014) , Wuliangye Yibin Co.Ltd(000858) , with a net purchase amount of more than RMB 1 billion. In terms of net sales, this week, China Tourism Group Duty Free Corporation Limited(601888) , Wuxi Apptec Co.Ltd(603259) were significantly sold, with a net sales amount of more than 1 billion yuan.
Table : Trading of top ten active stocks traded in Shanghai and Shenzhen Stock connect this week (January 17-21)
prepared by Zhang Ying
In terms of hot spots, from the perspective of shenwanyi level industries, 10 industries rose this week, including coal (5.5%), computer (4.4%), banking (4.32%), food and beverage (3.81%) and other industry indexes, with a cumulative weekly increase of more than 3%. In addition, the indexes of pharmaceutical and biological industries, national defense military industry and basic chemical industry all fell by more than 4% in the week.
At the same time, statistics show that next week (January 24-28) is the last trading week before the Spring Festival, and 76 stocks will face the lifting of the ban, with a total lifting amount of 9.292 billion shares. According to the latest closing price, the total lifting market value is 192.33 billion yuan. In terms of the lifting of the ban on shares, Pharmaron Beijing Co.Ltd(300759) , beiteri, Cosco Shipping Holdings Co.Ltd(601919) , New Hope Dairy Co.Ltd(002946) , Ming Yang Smart Energy Group Limited(601615) , senxuan medicine and other individual shares have been lifted for more than 10 billion yuan.
Hong Kong Stock Market:
This week, the Hong Kong stock market rebounded from shock. Hang Seng Index closed at 24965.55 points, up 2.39% in total; Hang Seng technology index rose 1.76% and Hang Seng state-owned enterprises index rose 2.72% this week.
overseas market:
On Friday, the three major U.S. stock indexes closed down, and the market’s expectation that the Federal Reserve will have to raise interest rates many times this year to fight inflation increased, which put pressure on the stock market. The Dow fell 1.3% to 34265.37 points, the S & P 500 index fell 1.89% to 4397.94 points, and the NASDAQ fell 2.72% to 13768.92 points. This week, the Dow fell 4.58%, the S & P 500 fell 5.68% and the NASDAQ fell 7.55%. The Dow hit the largest weekly decline since November 2020, and both the S & P 500 index and the NASDAQ hit the largest weekly decline since late March 2020.
This week, Germany’s DAX index fell 1.76%, France’s CAC40 index fell 1.04% and Britain’s FTSE 100 index fell 0.65%.
On Friday, the major Asia Pacific stock indexes closed down, and the South Korean composite index fell 3% this week; The Nikkei 225 index fell 2.14% this week; Australia’s S S & P 200 index fell 2.95% this week; New Zealand nzx50 index fell 3.46% this week.
2. Bond market
On Friday, most of the US bond yields fell. The three-month US bond yield was flat at 0.172%, the two-year US bond yield fell 2.54 basis points to 1.014%, the three-year US bond yield fell 2.91 basis points to 1.292%, the five-year US bond yield fell 2.7 basis points to 1.564%, the 10-year us bond yield fell 4.68 basis points to 1.763%, and the 30-year US bond yield fell 4.7 basis points to 2.074%.
In China’s bond market, this week, the five-year main contract recorded the largest weekly increase in more than 21 months, and the yield of five-year treasury bond 210011 fell by more than 18bp this week. Traders said that under the expectation of steady growth pressure and continued easing of monetary policy, the foundation for the subsequent improvement of the bond market is still solid. Only in the short term, we need to be vigilant against the capital disturbance of the Spring Festival.
3. Foreign exchange
Late Friday in New York, the US dollar index fell 0.17% to 95.63, while most non US currencies rose. The euro rose 0.29% to 1.1343 against the US dollar, the pound fell 0.34% to 1.3554 against the US dollar, the Australian dollar fell 0.66% to 0.7178 against the US dollar, the US dollar fell 0.38% to 113.67 against the Japanese yen, the US dollar fell 0.57% to 0.9119 against the Swiss franc, and the offshore RMB rose 62 basis points to 6.3416 against the US dollar.
On Friday, the onshore RMB closed at 6.3397 against the US dollar at 16:30, up 24 basis points from the previous trading day and 38 basis points this week. The central parity rate of RMB against the US dollar was 6.3492, down 7 basis points and up 185 basis points this week.
institutional investment view
Central China Securities Co.Ltd(601375) : after new year’s day, major institutions have changed positions and shares. Industries and individual stocks with large cumulative increase in the early stage and high overall valuation have been sold off. The financial industry with undervalued value and some defense industries have become the main direction of capital flow in the near future. It is suggested to pay close attention to the changes in policy, capital and external market. It is expected that the Shanghai index is more likely to fluctuate slightly around the annual line in the short term, and the gem is more likely to decline slightly in the short term. It is suggested that investors should wait and see for a short time, and the middle line should continue to pay attention to the investment opportunities of undervalued blue chips.
Haitong Securities Company Limited(600837) : the spring market of A-Shares has never been absent in the past 20 years. The spring market with the background of stable growth policy is such as 2012, the end of 2014 – the beginning of 2015 and 2019. The common characteristics of the steady growth spring market are: value first and then growth. In the early stage, the value of Shanghai and Shenzhen 300 and national securities led the rise, and in the later stage, the growth of gem and national securities led the rise. The steady growth policy is clear. The market background in spring is similar to that in the previous three times. The value and growth are expected to take turns, such as underestimated large financial real estate and hard technology of new infrastructure.
Citic Securities Company Limited(600030) : incremental funds began to stabilize and resume inflow. The clarification of the main line of steady growth will significantly improve market sentiment. It is expected that the starting point of the market in the first half of the year will appear before the Spring Festival.
