Economic Observer Network reporter Liang JiOn August 2, 2022, the major stock indexes in the Asia-Pacific region fell across the board. As of the close, the Shanghai Composite Index, Shenzhen Component Index and ChiNext Index were reported at 3186.27 points, 12120.02 points and 2678.62 points, down 2.26%, 2.37% and 2.02% respectively.
On the same day, the Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng Technology Index closed at 19689.21 points, 6702.07 points and 4194.04 points, down 2.36%, 2.59% and 3.01% respectively; the Taiwan Weighted Index closed at 14747.23 points, down 1.56%.
In addition, the Nikkei 225 closed at 27594.73 points and the Korea Composite Index closed at 2439.62 points, down 1.42% and 0.52% respectively.
Recently, rumors about whether Nancy Pelosi, Speaker of the U.S. House of Representatives, will visit Taiwan, China, continue to ferment, and the market is worried that there may be a conflict in the Taiwan Strait, which will put pressure on the capital market.
Xia Fengguang, manager of Rongzhi Investment Fund, told the Economic Observer.com that the rapid decline in the market on August 2 is a continuation of the trend of bottoming out since last week, and it is the fermentation of the market’s emotions about the uncertain situation. The main reason for the market adjustment last week is that after the rebound in the first two months, the market is waiting for further catalysts. However, the current policy is based on strategic focus, and no more-than-expected stimulus policies have been introduced, and economic data still needs to be released. Further observations. Therefore, when the market has no hope of upside, it chose the second bottom to confirm.
AStocks closed down across the board
On August 2, the Shanghai and Shenzhen stock markets opened sharply lower; as of the close, the three major A-share stock indexes closed down across the board. The Shanghai Composite Index fell more than 2%, falling below 3,200 points again. The total turnover of Shanghai and Shenzhen stock markets was 1,181.124 billion yuan, which was significantly higher than the previous day’s 993.861 billion yuan. The net purchase of northbound funds was -2.311 billion yuan, and the net purchase of southbound funds was 2.288 billion yuan.
On the plate, the plate is full of ink. All 31 industry classifications under the Shenwan level closed down. The five sectors of environmental protection, media, computers, textiles and apparel, building decoration and comprehensive fell by more than 4%; the defense and military sector fell the least, at 1.02%. In terms of individual stocks, only 401 individual stocks in the two cities closed up, and 4413 individual stocks closed down.
Xia Fengguang said that looking forward to the market outlook, short-term uncertainties will be more clear when placed on the medium-term framework. The point of view of the Politburo meeting last week was very clear, that is, to stabilize the economy, not to be subject to external pressure, and to have strategic determination. This is also applicable to the stock market. It is necessary to understand that the bottom of April is a clear policy bottom, and there is no room for it. lost. At the same time, it is also the result of the resonance between the macro-economic and emotional aspects. We must have full confidence in this bottom.
At the same time, overseas markets have also passed the most difficult stage, the expectation of the pace of Fed rate hikes has been reversed, and external concerns have gradually weakened. Therefore, a correction or even a short-term sharp decline does not mean that it will return to the previous continuous downward trend. The bottom range is still valid. It is the core of stock selection at this stage, rather than leaving the market in panic.
“Stable” at the head
On July 28, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to analyze and study the current economic situation and plan the economic work for the second half of the year. In the areas of fiscal policy and monetary policy, the meeting emphasized that macroeconomic policies should be active in expanding demand. Fiscal and monetary policies should effectively make up for insufficient social demand. Make good use of local government special bond funds and support local governments to make full use of the special debt limit. Monetary policy should maintain reasonable and sufficient liquidity, increase credit support for enterprises, and make good use of new credit from policy banks and investment funds for infrastructure construction.
Regarding issues such as the suspension of loans for local real estate and the risks of village banks, the meeting pointed out, “Consolidate the responsibilities of local governments, ensure the delivery of buildings, and stabilize people’s livelihood. It is necessary to maintain the overall stability of the financial market, properly resolve the risks of some local village banks, and severely crack down on financial crimes.”
Lang Chengcheng, general manager of the research department of Furong Fund, also said that the keynote of the Politburo meeting was the word “steady”, emphasizing “maintain strategic focus and do your own thing firmly.” On the whole, compared with the intensive support on the policy side in May and June, the follow-up is more focused on implementation and implementation. With the gradual stabilization of the economy, the support of the policy may weaken marginally.
Lang Chengcheng believes that although the short-term volatility of the market has increased, there is no need to panic. The short-term adjustment is mostly to revise the overly optimistic policy expectations and profit expectations in the previous period, and the pattern of weak economic recovery and loose liquidity has not changed.Return to Sohu, see more
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