U.S. stocks closed higher on Wednesday. The Fed raised interest rates by 25 basis points, in line with market expectations. Powell said that he will announce the reduction of the balance sheet as soon as May, and will accelerate the pace of policy tightening if necessary. Russia and Ukraine continue the fourth round of negotiations.
The 11 sectors of the S&P 500 generally rose, the consumer discretionary and information technology sector rose more than 3.3%, the communications and financial sector rose about 2.9%, the raw materials sector rose about 1.6%, the utilities sector closed down nearly 0.2%, and the energy sector fell more than 0.4%.
Large technology stocks rose collectively, Nvidia rose more than 6%, Tesla rose more than 4%, Amazon and Google-A rose more than 3%, and Apple and Microsoft rose more than 2%.
Chinese concept stocks soared collectively, the Nasdaq China Golden Dragon Index closed up nearly 33%, and many Chinese concept stocks soared, Zhihu rose by nearly 80%, Jinshan Cloud rose by more than 72%, Dingdong Shopping Mall and Joyous Jubilee rose by more than 66% , Douyu rose more than 60%, Pinduoduo rose more than 56%, iQiyi rose nearly 50%, Bilibili rose more than 47%, Jingdong, Baidu, Huya rose nearly 40%, and Alibaba rose more than 36%.
►►Relevant person in charge of the Ministry of Finance answered a reporter’s question on the real estate tax reform pilot: The real estate tax reform pilot was carried out in accordance with the authorization of the Standing Committee of the National People’s Congress. Some cities have carried out investigations and preliminary studies. It does not have the conditions to expand the pilot cities of real estate tax reform.
►►The central bank conveyed and learned the spirit of the special meeting of the Financial Committee of the State Council, adhered to economic construction as the center, adhered to high-quality development, adhered to deepening reform and opening up, adhered to the principle of marketization and the rule of law, and adhered to the protection of property rights and the two unswervingly. Monetary policy should take the initiative to respond, new loans should maintain a moderate growth, vigorously support small, medium and micro enterprises, firmly support the development of the real economy, and keep the economy operating within a reasonable range. Adhere to seeking progress while maintaining stability, prevent and resolve real estate market risks, steadily advance and complete the rectification work of large platform companies as soon as possible, promote the healthy and stable development of the platform economy, and improve international competitiveness. We will further strengthen inter-departmental policy coordination, respond to hot issues of market concern in a timely manner, stabilize expectations, boost confidence, maintain the stable and healthy development of China’s economy, and jointly maintain the stable development of the capital market.
►►The China Banking and Insurance Regulatory Commission held a special meeting to convey, study and implement the spirit of the meeting of the Finance Committee of the State Council, and make arrangements for the next step in the supervision of the banking and insurance industry. The meeting emphasized that it is necessary to adhere to the positioning that houses are for living in, not for speculation, continue to improve the long-term real estate mechanism of “stabilizing land prices, stable prices, and stable expectations”, actively promote the transformation of the development mode of the real estate industry, and encourage institutions to develop in a stable and orderly manner. M&A loans, focusing on supporting high-quality real estate enterprises to merge and acquire high-quality projects of difficult real estate enterprises, and promote a virtuous circle and healthy development of the real estate industry.
►►After the special meeting of the Financial Committee of the State Council on March 16, the CSRC Party Committee quickly held an enlarged meeting to convey the spirit of the study meeting, and made research and deployment on the implementation. It is mentioned that since the beginning of this year, my country’s national economy has continued to recover, the main macroeconomic indicators are operating within a reasonable range, the policies for stabilizing growth in all aspects have continued to exert force, the performance of listed companies has been stable and improving, the stable operation of the capital market has a solid foundation, and the market Short-term volatility has not and will not alter long-term healthy trends.
►►On March 16, the State Administration of Foreign Exchange held a special meeting to convey and study the spirit of the special meeting of the Finance Committee of the State Council, and to study, deploy and implement the work. The meeting demanded that we must adhere to economic construction as the center, adhere to high-quality development, adhere to deepening reforms, expand opening up, adhere to the principle of marketization and the rule of law, and adhere to the protection of property rights and the “two unswerving”. We will steadily and orderly advance the high-level opening of the capital account, further promote the facilitation of cross-border trade and investment, optimize foreign exchange services with a focus on small and medium-sized enterprises, firmly support the development of the real economy, and contribute to macroeconomic stability. Maintain the stable operation of the foreign exchange market, strengthen foreign exchange market monitoring, research and judgment and macro-prudential management, guide market players to more widely use exchange rate hedging tools, and actively prevent and defuse external shock risks. Cooperate with relevant departments to promote the healthy and stable development of the real estate market and the platform economy. Respond in a timely manner to hot issues of market concern, stabilize market expectations, and jointly maintain the smooth operation of the capital market.
►► After the CCTV 3.15 party exposed clues to the problems, the State Administration for Market Regulation immediately deployed and guided local market supervision departments to investigate and deal with the clues to the problems exposed at the party. Relevant provincial (municipal) market supervision departments carried out law enforcement actions overnight, and strictly investigated and punished illegal acts infringing consumers’ rights and interests in accordance with the law.
►►In order to further strengthen the daily supervision and risk prevention of private equity funds and enhance the compliance awareness of private equity fund managers in the jurisdiction, recently, the Guangdong Securities Regulatory Bureau officially issued a notice to organize private equity institutions in the jurisdiction to carry out private equity fund self-examination and self-correction work in 2022.
►►The Hong Kong Monetary Authority raised the base rate to 0.75%.
►► The US Federal Reserve announced on the 16th that it raised the target range of the federal funds rate by 25 basis points to between 0.25% and 0.5%. It was the first rate hike by the Fed since December 2018.
►►On the 16th local time, Russia and Ukraine prepared a ceasefire and withdrawal plan on the premise of maintaining neutrality and disarmament in Ukraine.
►►China Seismological Network News, two strong earthquakes occurred in Japan on the evening of March 16, with magnitudes 6.0 and 7.4 respectively. .
Changchun Hi-Tech: Net profit in 2021 will increase by 23.33% year-on-year
Changchun Hi-Tech disclosed in its annual report that its operating income in 2021 will be 10.747 billion yuan, a year-on-year increase of 25.30%; the net profit attributable to shareholders of listed companies is 3.757 billion yuan, a year-on-year increase of 23.33%.
Compass: It is planned to obtain 100% equity of Netcom Securities after the reorganization for 1.5 billion yuan
Compass announced in the evening that it plans to participate in the bankruptcy reorganization of Netcom Securities, invest 1.5 billion yuan to obtain 100% equity of Netcom Securities after the reorganization, and become its controlling shareholder. Since the target company has been in an abnormal state of operation in recent years, historical financial data cannot reflect the true value of the target company.
Lepu Medical: Planning to issue GDR overseas and list on the SIX Swiss Exchange
Lepu Medical announced that the company plans to issue global depositary receipts (“GDRs”) overseas and list them on the SIX Swiss Exchange.
Novozymes: Signed a contract for 215 million yuan of novel coronavirus antigen detection kits
Novozymes announced that Novozymes authorized Shanghai Pharmaceuticals to be the authorized distributors of Novozymes in Shanghai, its 100% shareholder Shanghai Pharma Holdings Co., Ltd. and its subsidiaries in the procurement of public health professional medical materials; Shanghai Pharma Medical plans to purchase a total of 215 million yuan of novel coronavirus antigen detection kits from Novozymes.
Shanxi Fenjiu: It is planned to invest 9.102 billion yuan to build the original wine production energy storage expansion project
Shanxi Fenjiu announced that the company plans to invest 9.102 billion yuan to build and implement the Fenjiu 2030 technological transformation of the original wine production and energy storage expansion project (phase I). The project covers an area of 1,932 acres and the construction period is planned to be three years. After the completion of the project, the company is expected to increase the annual production of original wine by 51,000 tons and increase the energy storage of original wine by 134,400 tons.
Founder Securities:In an environment where internal factors are favorable to the A-share market, external negative factors have caused a strong distorting impact. Recently, the market has experienced an uncontrolled and sharp correction trend, and there has been a serious oversold situation in the short-term. The Shanghai Composite Index PE is 12.59, PB It is 1.4. Such a low valuation not only has medium and long-term investment value, but also has upward momentum. According to the theory of investment mechanics, a market that is distorted to the extreme will definitely be reversed. Just like a spring, the greater the torque, the stronger the rebound. The bigger it is, the more it will sell at this time, and the stock prices of some growth blue chips will not only fall to the floor, but will also have a retaliatory rebound.
GF Securities:The “odds-to-win ratio” of A-shares has improved, and the valuation of A-shares is below the historical average, with medium- and long-term allocation value. It is suggested to pay attention to: (1) resources/materials (coal/aluminum/potash fertilizer) benefiting from the “supply-demand gap” inflation logic; (2) “old-style” steady growth will still carry the role of “stabilizer” (real estate/building materials/coal chemical industry); (3) “New” stable growth drivers, such as digital economy/photovoltaic.
CITIC Construction Investment:The rebound of the market has started as scheduled. It is expected that the strength and duration of this round of rebound will exceed the last round of counterattacks after the Spring Festival, and the growth style of this round of rebound is dominant, and the performance of the first quarter is the core. The current market is relatively cost-effective in the long run, which is suitable for long-term capital allocation. It is recommended to focus on industries: semiconductors, photovoltaics, military industry, automobiles, batteries, liquor, banks, social services, etc.
