Home » Shanghai and Shenzhen A-shares jointly lower the market’s new stocks, “blood-drawing” effect appears. Interim report intensive disclosure period, beware of individual stocks “seeing death”

Shanghai and Shenzhen A-shares jointly lower the market’s new stocks, “blood-drawing” effect appears. Interim report intensive disclosure period, beware of individual stocks “seeing death”

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(Original title: Shanghai and Shenzhen A-shares jointly lower the market’s new stocks. The “blood draw” effect of new stocks appears. Interim report intensive disclosure period beware of individual stocks “seeing death”)

Affected by the decline of heavyweight stocks such as wine and pharmaceuticals, the market fluctuated lower this week. This week the Shanghai Composite Index fell 2.53%, the Shenzhen Component Index fell 3.69%, the Shanghai and Shenzhen 300 Index fell 3.57%, and the ChiNext Index fell 4.55%. From the weekly perspective, the Shanghai Stock Exchange Index closed overcast in volume this week after a two-week rebound; in the Shenzhen market, the ChiNext Index closed overcast for two consecutive weeks.

Industry insiders believe that the recent issuance of large-cap IPOs has put greater pressure on market capital, and the sharp decline in traditional consumer leading stocks has also dealt a big blow to mid- to long-term investors. Next week, while paying attention to changes in trading volume, investors can continue to track the trends of securities firms and resource sectors.

The Shanghai stock index bottoms again

The market trend was weak this week, and the Shanghai Composite Index fell more than 2% in a week. Specifically, on Monday, the long and short sides were relatively balanced, but on Tuesday, the short side exerted force, and the Shanghai Composite Index fell 2% in volume that day. Although many parties rebounded on Wednesday led by brokerage stocks, the trading volume shrank significantly. The broad market continued to weaken on Thursday and Friday, and the Shanghai Composite Index fell more than 2% during the intraday session on Friday. In the Shenzhen market, the Shenzhen Component Index fell more than 3% this week, and the ChiNext Index fell more than 4%.

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Among the top 20 heavyweight stocks in the GEM index, only 4 rose this week, namely Sangfor, Watson Bio, Shengbang, and Zhuoshengwei; in terms of declines, Mindray Medical, Tigermed, Kanglong Chemical, Seven stocks including Opcom, Aier Ophthalmology, Sanhuan Group, and Yiwei Lithium Energy have fallen by more than 10% each week, of which Mindray Medical has fallen by 23.79% during the week.

It is worth noting that the brewing and pharmaceutical sectors fell sharply this week, dragging the market to bottom again. Kweichow Moutai, a leading liquor stock, fell nearly 9% this week, and its share price hit a new low for the year on Friday. Among the Shanghai and Shenzhen 300 constituent stocks, there were 5 limit downs on Friday, namely Chongqing Beer, Tongce Medical, Antu Biology, Jinyu Medical, and Hengrui Medicine. In addition, Shanxi Fenjiu fell 9.0% on Friday.

Regarding the recent weakening of the major consumer sector, an analyst from Haitong Securities told reporters that liquor and medicine, as traditional defensive sectors, have slowed down their performance after years of rising. The trend has also begun to deteriorate, and investors should not blindly grab a rebound.

Short-term stress appears

Although the turnover of the two cities has remained above one trillion yuan recently, the market trend has faltered, and the center of gravity has shifted significantly downward. In addition to the rapid ebb of theme stocks, the issuance and listing of new large-cap stocks also poses greater pressure on market capital.

On Friday, China Telecom went public, with a turnover of more than 20.1 billion yuan that day. Public information shows that China Telecom was established in 2002 and is China’s leading large-scale full-service integrated intelligent information service operator. In the first half of 2021, China Telecom’s revenue and net profit growth both reached double digits, up 13.1% and 27.2% year-on-year respectively.

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The reporter noticed that before 10:50 on Friday, China Telecom’s stock price was basically in a state of slight increase, with the lowest price of 4.58 yuan/share, and the issue price of this stock was 4.53 yuan/share. After 10:50, the stock changed significantly, and there was a temporary stop during the intraday session. The maximum increase on the day was close to 44%, and it closed at 6.11 yuan per share, which was a 34.88% increase on the day. However, on the first day of China Telecom’s A-share listing, China Telecom’s H-shares fell 4.78% to close at 2.790 yuan per share.

Industry insiders believe that after China Telecom went public on Friday, the impact on heavyweight stocks is still considerable, especially for traditional blue chip stocks, which has caused a “blood draw” effect. If the stock opens sharply lower next Monday, the killing of short-term funds should not be underestimated.

On the evening of August 18, China Mobile announced that the application materials for the company’s initial public offering of A shares have been accepted by the China Securities Regulatory Commission, which indicates that China Mobile may achieve A shares listing in the near future. Like China Telecom, which is listed on the main board of the Shanghai Stock Exchange, China Mobile is also a giant. According to the prospectus, this time China Mobile plans to publicly issue no more than 965 million A shares, which will not exceed 4.5% of the company’s total issued shares after the issuance. It plans to raise approximately 56 billion yuan.

Regarding the return of “Big Mac” companies to A-share listings, Cheng Bin, a private equity fund manager in Shanghai, believes that short-term market “blood loss” may be caused, which is bad for traditional blue chips. Demolish the east wall to make up the west wall.

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Adjust the trend or continue

Faced with the recent market weakness, industry insiders believe that the short-term market may continue to bottom out, and attention should be paid to controlling risks in operation.

Mr. Xue, a senior manager of Guotai Junan, told the reporter of “Public Securities News” that although the stock index has not fallen much this year, many stocks have doubled several times, and there are still many opportunities. However, investors should pay attention to the rhythm of the plate rotation. Recently, leading liquor and pharmaceutical stocks have broken and fell. It is not ruled out that it is the behavior of institutions to adjust positions. After all, they have increased excessively in the past few years. For now, the cyclical sector is still the first choice. As for the broader market, the trend of bottoming may continue in the short to medium term. The Shanghai Stock Exchange Index has strong support at 3,300 points, and pressures above 3,500 points.

Chen Li, an analyst at Chuancai Securities, believes that the current mid-term report is intensively disclosed. The recent stock price growth of some sectors has overdrafted the performance growth in advance. Therefore, recently there have been situations in which the mid-term report disclosed good performance growth but the stock price has fallen. Therefore, the current strategy is still to look for the “low-level supplementary gain” sector, focusing on the direction of national strategic support and the sector is at a low level and a higher margin of safety.

Reporter Tang Xiaofei

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