June Sees Significant Increase in Turnover of Major A-Share Transactions
Data released recently indicates that the turnover of major A-share transactions in June reached 68.106 billion yuan, marking a month-on-month increase of over 25%. The top three stocks with the highest cumulative large transaction volume for the month were the Beijing-Shanghai High-speed Railway, Midea Group, and CICC.
Of particular note is Midea Group’s recent activity in major transactions. On June 30, Midea Group engaged in a major transaction worth 257 million yuan. Further analysis reveals that throughout June, Midea Group had a total of 43 large transactions, with a cumulative turnover exceeding 3.5 billion yuan, including institutional purchases exceeding 3 billion yuan.
The A-share market recorded a total of 3,813 large transactions in June, with a cumulative turnover of 5.407 billion shares, representing a month-on-month increase of 30.9%. The total transaction value also saw a significant increase, reaching 68.106 billion yuan, a month-on-month increase of 26.85%.
Based on the ranking of cumulative turnover for individual stocks, the Beijing-Shanghai High-speed Railway ranked first from June 1 to June 30, with a turnover of major transactions reaching 4.321 billion yuan. Midea Group and CICC ranked closely behind, with transaction volumes of 3.56 billion yuan and 2.773 billion yuan, respectively. Other stocks with high transaction volumes included Three Gorges Energy, Century Huatong, Yangtze Power, and TCL Technology, all exceeding 1 billion yuan.
Midea Group’s increased activity in large transactions is worth noting. From June 26 to June 30, the company engaged in numerous large transactions for five consecutive days, with institutional buyers and sellers participating. Throughout June, Midea Group conducted a total of 43 large transactions, with institutions buying shares worth 3.267 billion yuan and selling shares worth 2.95 billion yuan.
Among the 43 transactions, 36 were transacted at par prices, while 7 were transacted at discount prices. As of the close on June 30, Midea Group’s stock price stood at 58.92 yuan per share, with a total market value of approximately 413.7 billion yuan, representing a cumulative increase of 20.54% since June.
According to a research report by China Merchants Securities, Midea Group’s performance in the first quarter surpassed expectations. During this period, the company achieved operating income of 96.263 billion yuan, a year-on-year increase of 6.51%, and a net profit attributable to the parent company of 8.042 billion yuan, a year-on-year increase of 12.04%. Notably, the company’s Building Technology Division, Robotics and Automation Division, and Industrial Technology Division recorded revenues of 7.8 billion yuan, 7.6 billion yuan, and 6.2 billion yuan, respectively, during the reporting period, with year-on-year increases of 41%, 27%, and 11%.
In terms of the Beijing-Shanghai High-speed Railway and CICC, part of their major transactions in June resulted from shareholders reducing their holdings. On June 28, the Beijing-Shanghai High-speed Railway announced a notification letter received from its shareholder, Ping An Asset Management, on June 27. From June 21 to June 27, the “Ping An Asset Management-China Construction Bank-Beijing-Shanghai High-speed Railway Equity Investment Plan” accumulated 646 million shares of the company through block transactions, accounting for 1.32% of the company’s total share capital. Similarly, CICC announced on June 16 that shareholder Haier Jinying reduced its holdings of 52.3272 million shares, accounting for 1.08% of the company’s total share capital, from May 12 to June 16.
The electronics industry boasted a turnover of nearly 10 billion yuan in major transactions. The recent surge in large transactions indicates that institutions are actively seizing market opportunities. In June, institutional-only seats appeared among 682 buyers of large transactions, with a total of 1.721 billion shares traded and a cumulative turnover of 22.562 billion yuan, a month-on-month increase of 41.47%. From a single transaction point of view, the Beijing-Shanghai High-speed Railway ranked first with a large transaction volume of 1.497 billion yuan. Other stocks with high transaction volumes included New Industries, CICC, Guoxuan Hi-Tech, and Hongchuan Wisdom, each exceeding 300 million yuan.
On the other hand, institutional seats were sold in 295 large transactions in June, with a cumulative turnover of 1.856 billion shares and a total turnover of 15.29 billion yuan. Three Gorges Energy and the Beijing-Shanghai High-speed Railway were among the companies with relatively large transaction volumes.
In terms of industry distribution, the electronics industry ranked first from June 1 to June 30, with a total transaction volume of 9.929 billion yuan. The pharmaceutical and biotechnology industries and power equipment industry ranked second and third, respectively, with total transaction volumes of 7.232 billion yuan and 6.272 billion yuan.
Regarding the market, analysts express optimism about a rebound in the index level in the third quarter. Wu Xinkun, co-chief analyst of Haitong Securities Strategy, stated that the market’s valuation and sentiment indicators are currently at a low level, with low expectations for fundamental performance implied by the price index. Compared to the bond market, the stock market is relatively cost-effective. Wu believes that as the fundamental turning point is confirmed, the market will be driven by fundamentals in the second half of the year.
Mou Yiling, chief strategy analyst of Minsheng Securities, also believes that the economy still possesses resilience in 2023, and a short-term cyclical bottom may have occurred. Mou states that excluding the price effect, demand-side economic growth remains stable this year. Additionally, as the active destocking phase concludes and downward price pressure eases, the cyclical bottom of the economy may have been reached. Mou is optimistic about the index level rebound in the third quarter and recommends industry allocations in bulk commodities, important state-owned enterprises, new energy, capital goods exports, and low-to-medium price bands and new group consumption in sinking markets.
Li Qiusuo, a strategic analyst and managing director of CICC’s research department, suggests that growth should be the main focus in the short term, while consumption should be the focus in the medium term. He specifically recommends focusing on the partial growth field aligned with new technologies, new industries, and new trends, particularly technological growth tracks such as artificial intelligence and the digital economy. Li also suggests areas with improving demand or supply patterns, such as inventory and production capacity improvements, and areas with high dividend rates and high-quality cash flow, as undervalued state-owned enterprises still have room for policy-driven repairs.
(Source: China Securities Journal)
Article source: China Securities Journal
Original title: The chain has increased by more than 25%! Institutions are buying this 100 billion leader