On Monday, A-shares are now rebounding strongly, and the three major indexes opened higher and moved higher, all of which were repaired. As of the close, the Shanghai Composite Index reported 3,477.13 points, an increase of 1.45%; the Shenzhen Component Index reported 14,535.88 points, an increase of 1.98%; the ChiNext Index reported 3,293.77 points, an increase of 3.16%.
On the disk, the industry sector showed a general upward trend. The technology, liquor and other sectors that retreated sharply last Monday all recovered to varying degrees. The combined turnover of the Shanghai and Shenzhen markets reached 1.32 trillion yuan, the 24th consecutive trading day that exceeded one trillion yuan. The northbound funds that had previously flowed out sharply also resumed net purchases, with net purchases of 1.831 billion yuan throughout the day.
Weighted blue chip sentiment repair
On Monday, driven by the heavyweight Ningde Times rising 5.62%, the GEM index rose by more than 3%, leading the two markets. In addition, Sungrow, Inovance Technologies, Mindray Medical, Zhifei Bio and other GEM blue chip stocks all rose more than 5%.
Liquor stocks also rebounded higher: Yilite’s daily limit, Shunxin Agriculture and Yanghe shares rose more than 5%. Kweichow Moutai once pulled up nearly 3% in intraday trading, regaining a market value of 2 trillion yuan, but then its gains narrowed and closed up 1.43% as of the close.
Regarding the market outlook, most institutions believe that the fundamental factor that determines the market style switch is still in the fundamentals.
Chen Guo, chief strategy analyst at Essence Securities, believes that from the perspective of the liquidity environment, A-shares currently have a structural basis for the market. In the medium and long term, the most important factor in whether the main line is switched or not is the comparison of economic trends. Therefore, in the allocation direction, we should continue to deploy new energy and other high-prosperity and long-term targets. In the short-term, we should pay attention to the direction that benefits from stable growth and policy easing.
Dai Kang, chief strategist of GF Securities, is also optimistic about the technology manufacturing industry whose performance in the semi-annual report is restored, as well as some types of infrastructure benefiting. However, Daikang believes that the main line of small-cap growth will be strengthened by the market, and it is recommended to continue to allocate targets with small market value, high immediate performance, and low PEG.
The military sector has repeatedly strengthened
Yesterday, the military industry sector strengthened again. As of the close, the national defense and military industry sector once again led the rise of the Shenwan Tier 1 industry sector with an overall increase of 3.96%. The military-industry-leading ETF once exceeded 4% in intraday gains, and many stocks such as Hager Communications had their daily limit. The leader of the whole aircraft, AVIC Shenfei, once had a daily limit and closed up 9.13%.
Since the second quarter of this year, the military sector as a whole has shown a trend of repeated strengthening. Some institutions believe that good fundamental orientation is the main determinant of the continued rise of the sector.
As of August 21, 54 companies in the military sector have disclosed semi-annual reports. In the first half of the year, the revenue of these companies increased by 32% year-on-year, and the net profit attributable to the parent increased by 80% year-on-year. The overall performance was very impressive.
Liu Chenming, chief strategy analyst at Tianfeng Securities, said that the market has been extremely differentiated since the second quarter, and relative performance is still the core factor, and policy changes have played a role in boosting. Therefore, high-end manufacturing may become the main line of the new cycle. In the medium term, new energy (especially upstream), semiconductors, and military industries are optimistic. Currently, the most optimistic about the performance elasticity of the military sector under the support of fundamentals.
The poor performance of new stocks in the market
However, the performance of the two major new stocks recently listed was not satisfactory.
Yesterday was the second trading day of China Telecom’s A-share listing, with a lower limit at the opening. As of the close of trading, there were more than 10 million orders on the down limit, and the stock had a turnover of 1.71 billion yuan throughout the day. Last Friday, China Telecom landed on the A-share market and closed up 34.88%, with a turnover rate of 67.14%, and a full-day turnover of 20.11 billion yuan.
The Shanghai Rural Commercial Bank, which was listed on the A-share market last Thursday, also failed to seal the 44% daily limit on the first day, and went down last Friday. Yesterday was the third trading day of Shanghai Rural Commercial Bank’s listing. The stock once fell below the issue price of 8.9 yuan per share at the opening, and the closing decline narrowed to 7.48% to 8.91 yuan.
GF Securities said that from a long-term perspective, the sub-IPO market is correlated with stock market trends, sub-IPO valuations, sub-IPO performance, IPO concentration, liquidity environment, and risk appetite. At the same time, with the advancement of the registration system, the normalization of IPOs accelerates the supply of secondary new shares, and the efficiency of new shares pricing will be higher. The differentiation of the sub-new stock market has intensified, and investors should pay more attention to the selection of individual stocks. Sub-new stocks with good performance growth, high institutional holdings, and low relative industry P/E ratios at the time of issuance tend to perform better.Return to Sohu to see more
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