China News Client, Beijing, July 9th (Reporter Xie Yiguan) The performance of the A-shares has kept 160 million shareholders "exciting".
After a lapse of 5 years, A-shares have once again surpassed trillions of turnover for 5 consecutive days. The Shanghai stock index rose more than 400 points in just 7 trading days, an increase of nearly 15%. "Is the A-share bull market really coming" has also become a hot topic this week.
In the context of economic development being affected by the epidemic, why does the stock market continue to soar? What are the funds that drive the stock market up?
Shanghai index chart.
The Shanghai index surpassed 3400 points, and the GEM index returned to 2600 points
After a few days of hot market, the market on the 8th tended to calm down. The three major stock indexes of the A-share market opened mixed. The intraday intraday volatility is wide and the industry sector is performing differently. Brokerage stocks made a comeback, and the broader market rose late, with the Shanghai stock index closing above 3400 points.
As of the close, the Shanghai index rose 1.74% to 3340.44 points, achieving a "seven consecutive gains"; the Shenzhen Component Index rose 1.84% to 13406.37 points; the GEM Index rose 2.34% to 2651.97 points, returning to 2600 points.
On the disk, a total of 3124 stocks in the two cities rose, and 180 stocks had daily limits; 539 stocks fell, and 7 stocks fell.
The panel styles switched rapidly, with the shipping and aviation sectors leading the broader market, up more than 9%. The major financial sector that had been pulled back earlier picked up, and the securities, insurance, and diversified financial sectors rose ahead; the wine-making sector, which led the rise on the 7th, closed down against the market on the 8th.
In terms of the concept sector, the gaming concept, digital currency, rare earth permanent magnet and other sectors performed well. The defense military concept lifted the daily limit, and 32 related stocks such as Dongfang Electric Heating, Tongguang Cable and Guangdong Ganhua blocked the daily limit.
Partial daily limit stocks in the defense military sector.
Market sentiment continued to soar, with A-share turnover reaching 1.5 trillion yuan on the 8th, and rarely exceeding trillion yuan for the fifth consecutive day. In recent days, many brokerage apps have even been stuck. Alibaba Cloud also confirmed to a reporter from China New Network: Recently, due to the sudden enlargement of the stock market trading volume, Alibaba Cloud has received the expansion demand of multiple brokers to solve the problems of brokerage APP data delays and transaction stalls.
Who is taking money into the market?
Who is entering the market with a turnover of over one trillion yuan? At present, individual investors, foreign capital and funds are the main forces, but industrial funds have been reduced.
——The balance of the two financings soared continuously, increasing by more than 100 billion in 5 days
Recently, the number of account openings by stockholders of securities companies has greatly increased, and the balance of margin financing and securities lending in stock markets has also continued to soar. As of July 7, the balance of A-share financing and securities lending was 1,268.546 billion yuan, an increase of 26.717 billion yuan from the previous trading day. In the five trading days of July alone, the cumulative growth exceeded 100 billion yuan.
The financing balance of some companies has increased significantly. According to Wind statistics, on July 7, the financing balance of 27 stocks increased by more than 15%, the latest financing balance exceeded 200 million yuan, and accounted for more than 1% of the market value of circulation.
"The rate of return on bank wealth management products has been declining, residents' desire to move into the market is strong, and the era of residents' assets embracing large rights and interests has arrived." Wu Chaoming, deputy dean of Caixin International Economic Research Institute, said.
——Foreign investment continued to be raised, with a net inflow of over 50 billion in 5 days
The A-share market is also optimistic about foreign investment. On the 8th, the northbound funds made a slight net purchase of 1.153 billion yuan throughout the day, which was a net purchase for 5 consecutive days, and the net purchase amount was significantly narrowed compared with the previous 4 days. However, the total net inflow of foreign capital since July has reached 54.956 billion yuan, exceeding the total net inflow of northbound funds in June.
"In the context of continuing to maintain loose currencies and extremely low interest rates around the world, the core assets of A shares are still the medium- and long-term allocation of foreign capital." AVIC Securities believes.
In the past 30 days, northward capital flows.
——The new fund has easily exceeded 10 billion in scale , and the total amount raised this year has exceeded 1 trillion
In the heat of the market, a number of fund companies recently launched heavy products, raising a scale of more than 10 billion. Taking Huitianfu Mid-Cap Value Select Hybrid Securities Investment Fund, which was launched on July 6, as an example, its initial fundraising scale was approximately 69.25 billion yuan.
Wind data shows that as of July 5, 687 new funds have been established this year, with a total fundraising of 1.077 trillion yuan, which makes 2020 one of the three years for new funds to raise trillions, before 2015. And 2019.
On the 8th, a survey report released by Tencent Financial Management revealed that equity funds are currently the main way for residents to allocate potential high-yield assets such as stocks. When considering the allocation of growth assets, 44.4% of respondents chose mixed funds, 37.9% of respondents chose stock funds, and 20.8% of respondents chose stock index funds.
According to Liu Mingjun, the chief investment expert of Tencent Fintech Think Tank, the performance of equity public funds this year was impressive. The average return of equity funds and partial-share hybrid funds in the first half of the year was around 20%.
——Over-the-counter capital allocation took the lead and industrial capital “flee”
In addition to regular channels, off-site funding has also made a comeback, with 10 times the benchmark funding.
While other funds have entered the market, industrial capital has recently started to "flee." According to media statistics, on the evening of July 6 and July 7, a total of 36 listed companies in the Shanghai and Shenzhen cities disclosed shareholder reduction plans, involving 59 important shareholders, with a total planned reduction of approximately 7.024 billion yuan.
With the market continuously rising, why are shareholders of listed companies busy reducing their holdings? Judging from the reasons for reducing shareholdings disclosed, there are reasons for personal capital needs, business development needs, partnerships entering and exiting periods, and stock pledge return, among which personal capital needs account for the largest proportion.
Information figure: Stockholders in a securities business department are concerned about the market trend. China News Agency reporter Zhang Langshe
Why is the stock market soaring continuously?
The stock market's vigorous advancement also caused netizens to pay close attention to it. "Are the bull market really coming?" It has become a hot topic for several days. As of the evening of July 8, the number of readings on this topic has exceeded 460 million, and the discussion has exceeded 15,000. Among them, some netizens questioned, "The economy has been affected so much by the epidemic, why did the stock market rise so much?"
Under the impact of the epidemic, China’s first-quarter GDP fell by 6.8% year-on-year, the lowest since the quarterly GDP was announced in 1992. The "troika" of consumption, investment, and exports all experienced negative growth, falling by more than 10% year-on-year.
The economic transcripts for the second quarter have not yet been announced, but data from the National Bureau of Statistics show that from January to May, the decline in investment has narrowed for three consecutive months, and national fixed asset investment (excluding farmers) fell 6.3% year-on-year. In May, the total retail sales of consumer goods decreased by 4.7 percentage points from the previous month, and decreased by 2.8% year-on-year.
A reporter from China News found that although the impact of the epidemic on the economy is an objective fact, experts from research institutions and economic circles believe that the stock market is a "barometer of the economy". The rise of the stock market is based on economic recovery and good economic growth. expected.
"The recent A-share market has become more enthusiastic, and the Shanghai index has reached a new high in the past two years. It stems from the domestic epidemic prevention and control and economic restoration are all in the forefront of the world's major economies, and the economic fundamentals are full of resilience." Chang Wu Chao Ming said.
In June, China's Manufacturing Purchasing Managers Index (PMI) was 50.9%, an increase of 0.3 percentage points from the previous month, and it was above the 50% line for four consecutive months. Under normal circumstances, when PMI changes in the same direction for more than three consecutive months, it reflects the trend of economic operation and shows that the manufacturing industry is recovering steadily.
A few days ago, the International Monetary Fund (IMF) released the latest "World Economic Outlook", which predicts a global growth rate of -4.9% in 2020, which is 1.9 percentage points lower than the April forecast. But at the same time, the IMF expects China's economy to grow by 1.0% in 2020, the only country in its forecast that is growing.
"The Chinese economy is recovering from the sharp contraction in the first quarter, benefiting to some extent from policy stimulus." The IMF said.
Pan Xiangdong, chief economist of New Era Securities, told reporters from China News that after the outbreak, China’s monetary policy was loose, the price of funds between financial institutions was low, the growth rate of M2 and social financing rose sharply, and macro-liquidity was abundant. The Chinese economy recovered well. PPI growth rate bottomed out and corporate profits improved. "Since the end of March, the upward movement of the broad market hub has attracted social capital into the stock market, and the recent increase in the scale of partial stock fund issuance is proof."
"Investors, especially small and medium investors, should stick to the philosophy of rational investment, not only have full confidence in the development of China's economy and capital market, but also recognize the risks and uncertainties of the market." Associate Academy of National Finance Research Institute of Tsinghua University Wang Xian, director of the Research Center of Changzhou and Listed Companies, said that he will adhere to the concept of long-term value investment and make decisions without excessive interference with short-term sentiment or chase short-term trends. (Finish)