Sino-Singapore Jingwei client, June 12th, "Black Thursday", overnight US stocks plunged, the three major stock indexes of A shares all opened sharply lower, the Shanghai index opened 1.51%, the Shenzhen Component Index opened 2.01%, and the GEM index opened 2.08. %.
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On June 11th, local time in the United States, US stocks suffered a "black Thursday." Daily decline. In addition, crude oil prices and other asset classes have also fallen. Investors worry that the second wave of outbreaks in major economies such as the United States may endanger economic restart.
Major European stock indexes also fell across the board. The German DAX index fell 4.47% to close at 11970.29 points; the French CAC40 index fell 4.71% to close at 4815.60 points; the British FTSE 100 index fell 3.99% to close at 6076.70 points.
Both Japanese and Korean stock markets opened lower, with the Nikkei 225 index opening down 1.74% at 22082.12 points, and the South Korean Composite Index opening down 4.07% at 2088.24 points.
In China, the A-shares opened sharply lower, the Shanghai index opened at 2878.68 points, down 1.51%, with a turnover of 4.296 billion yuan; the Shenzhen Component Index reported at 11017.15 points, down 2.01%, and the turnover was 0.0 billion yuan; the GEM index reported 2149.96 points, a drop 2.08%.
In terms of individual stocks, 72 stocks rose, among which 11 individual stocks such as Teyi Pharmaceuticals, Caesar Culture and Saisheng Pharmaceuticals rose more than 5%. 3723 stocks fell, of which 38 stocks such as Saiwu Technology, ST Bio, and Kuangda Technology fell more than 5%.
In terms of capital flow, the top five inflows in the industry sector are other transportation equipment, cultural media, Internet media, marketing communications, and shipbuilding. The top five outflows are other transportation equipment, cultural media, internet media, marketing communications, Shipbuilding.
The top five inflowing stocks are Zhejiang Linuo, Electroacoustic, Yitian, Platinum Branch, Zhongke Haixun, and the top five outflows are Zhejiang Linuo, Electroacoustics, and Yitian , Platinum Branch New Materials, Zhongke Hisun. The top five influential themes are O2O concepts, cotton, UHV, wind power, and Shenzhen state-owned assets reform, and the top five out-of-the-top concepts are O2O concepts, cotton, UHV, wind power, and Shenzhen state-owned assets reform.
Why did US stocks plunge unexpectedly?
The "long absence" slump caused widespread concern and concern in the market. After all, the huge earthquake in the market in March was still vivid.
Why did the US stock market plunge? CICC pointed out that, first, the media reported that the epidemic situation in some US states such as California, Texas, Arizona, Florida and other places have recently increased, causing market concerns about the second wave of the epidemic, and the promotion of resumption of work after the epidemic is May. The main logic and driving force of market rebound since China;
Second, the Fed’s FOMC meeting in the early hours of the morning was basically in line with expectations. It continued to remain accommodating but did not provide more policy support. It was difficult to further increase the strength of asset purchases;
The third is that after the rapid rise in the past two weeks to recover the lost ground since the beginning of the year, and even Nasdaq hit a new high, the valuation has further climbed to a high level and is in an overbought state.
CICC analyzed that after experiencing a "roller coaster"-like violent ups and downs in the first half of the year, U.S. stocks and major overseas markets reached their current position at a "three forks": it was driven by the epidemic situation and the progress of resumption of work to recover the lost ground, Or is it due to the recurrence of the epidemic and the resurgence of political risks, or is it still in a state of deadlock? The current market is facing both positive and negative factors: on the positive side, policy support continues, and overall liquidity is adequate; fundamentals are gradually restored under the resumption of work; institutional positions are not high; on the negative side, valuations are already too high; the US election is approaching , The international environment faces variables and so on.
Based on historical experience, regardless of whether the reasons behind the market plunge are sufficient or justified, generally speaking, once such a large fluctuation occurs, it may need to be relatively digested.
A-share outlook
There is a general relationship between domestic investors. If overseas assets continue to fluctuate, will there be more funds to come to the Chinese market for hedging? What about the A-share market outlook?
Fidelity International pointed out in its outlook report for the second half of the year that the epidemic has increased global uncertainty and the Chinese market remains attractive. In the second half of 2020, China's economy will accelerate its recovery, technological innovation is still an important growth point, industry concentration will be further improved, and the trend of "strong and constant strong" is obvious. In addition, China continues to expand the breadth and depth of financial market reform and opening up, and will also attract more long-term funds to actively participate in China's financial market.
For A shares, Everbright Securities analysis, from a strategic point of view, the current A stock market value/M2 is at the 51.3% quintile since 2011, and the market is not significantly overvalued. At the same time, the M2 growth rate in May was 11.1% year-on-year. Growth is still maintained at a relatively high level, and future domestic policies do not have the possibility of substantial tightening. Under this background, the market may have risks in the short term, but the probability of low innovation is low. (Sino-Singapore Jingwei APP)
(The opinions in this article are for reference only, and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)
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