China News Client, Beijing, July 20 (Reporter Xie Yiguan) After experiencing the "Roller Coaster" market last week, Monday (July 20) the big financial sector exerted force, and A shares returned to a strong position, reproducing the daily limit of 100 shares. The Shanghai index rose more than 3%, regaining 3300 points.
In the stock trading group, last Thursday (July 16), stockholders who shouted "the bull market is no longer", looked at the market on the 20th and threw a sentence: "If the bull market starts, the securities firm must get up first."
Shanghai index K chart.
The Shanghai stock index rose 100 points, more than 170 daily limit
On the 20th, the A-shares opened higher and the stock index fluctuated upwards throughout the day, ushering in the "Er Lianyang", which rose 3.11% to 3314.15 points; the Shenzhen Component Index rose 2.55% to 13448.85 points; the GEM Index rose 1.31% to 2697.30 points . A total of 3437 stocks in the two cities rose, and 178 stocks had a daily limit; only 282 stocks fell, and 10 stocks fell.
On the disk, the national defense military industry sector has set a daily limit, and 37 relevant stocks such as special materials, Ruichuang Weina, and aerospace electronics have blocked the daily limit and become a major force in the stock market. Among them, the ship sector led the broader market, up more than 9%.
In addition, in the context of the CSRC's encouragement of market-oriented mergers and acquisitions and reorganization of the securities fund industry, and the China Banking and Insurance Regulatory Commission to increase the proportion of insurance funds equity investment supervision, the rise of big finance, insurance, securities companies, diversified finance and other sectors also rose. However, the market for "drinking alcohol and taking medicine" is no longer, and the medicine and liquor sectors are mediocre.
On the 20th, the market sentiment continued to be active, with the daily trading volume of the Shanghai and Shenzhen markets approaching 1.2 trillion yuan, which exceeded 13 trillion yuan for 13 consecutive trading days. Although it is still at a high level, compared with the previous turnover of more than 1.5 trillion yuan, the amount of contraction in the past two transactions has been obvious.
According to AVIC Securities, the market trading enthusiasm has cooled down, and there are resonance effects of internal and external negative factors.
"Recent changes in the external environment have formed a certain restraint on the inflow of capital going north, which has dragged down the performance of the previous A-share market. Since July, a series of events have indicated that the regulators intend to "cool down" the stock market to prevent the market from overheating." AVIC Securities pointed out In the short term, market sentiment will be suppressed.
It is worth noting that although the stock index rose sharply, the net outflow of northbound funds with a small net inflow last Friday (July 17) reappeared on the 20th, at 5.899 billion yuan. Among them, the net inflow of Shanghai Stock Connect was 2.344 billion yuan, and the net outflow of Shenzhen Stock Connect was 8.243 billion yuan.
In the past 30 days, northward capital flows.
The impact of the "relief of the ban on tide" by Kechuang may have limited impact on the market
"One point to be concerned this week is that the first batch of listed companies on the Science and Technology Board will usher in a collective lifting of the ban on 22nd." .
According to the closing price of last Friday, the first batch of listed companies on the Science and Technology Board lifted the ban on stock market value close to 180 billion yuan.
"On July 22, the liquidity of the science and technology board may face greater pressure, and the short-term stock price may be under pressure, and it will cause some disturbance to the technology sector. However, the possibility of sustained large shocks is small, and the impact on individual stocks is greater than the overall stock market." Huatai Securities pointed out.
Some market analysts said that from the trend of the 20th broad market, the market seems to have expected the lifting of the ban on the science and technology board, and the favorable policies from supervision have made the stock market more obvious.
On the 17th, the China Banking and Insurance Regulatory Commission issued the "Notice on Matters Relevant to Optimizing the Supervision of Equity Asset Allocation of Insurance Companies", clarifying that the equity allocation of insurance companies can account for up to 45% of total assets at the end of the previous quarter.
"According to the equity allocation ratio of 35%-45%, it is assumed that about half is invested in the stock market (according to the first quarter of 2020), and the incremental capital of the stock market is estimated to be about 1.2 trillion-2.2 trillion yuan." Huatai Securities said.
"Although this new regulation is not equivalent to insurance funds plus stocks, at the current time, the new regulations reflect the regulator's thinking on deregulation of regulated insurance institutions and support for the healthy development of the capital market." CICC The company believes that this has a certain positive effect on market sentiment.
Information figure: Stockholders in a securities business department are concerned about the market trend. China News Agency reporter Zhang Langshe
Institutions are optimistic about the opportunity for incremental funds to enter the market
"A-shares will rise after a big decline?" This is a question many investors have in mind on the 20th.
"Recent factors have led to market adjustments, but the shocks have been short-term. In recent years, regulators have continuously guided long-term funds into the market. In the second half of the year, funds, insurance and foreign investment are still expected to bring large levels of incremental funds and become the market support. Important cornerstone." Guosheng Securities' strategy Zhang Qiyao's team believes that in the context of a substantial inflow of incremental capital, market opportunities are far greater than risks.
"Under incremental funding, some are just style diffusion rather than switching." In the view of Industrial Securities, the "blue chip" direction such as the low-value financial real estate cycle has become a "scent" for phased incremental capital investment. The market has built a better platform. Moreover, market sentiment is rising, risk appetite is increasing, and the direction of growth will "catch up."
AVIC Securities believes that the market is expected to absorb most of the negative effects in the short term, and the basis for the formation of a medium- and long-term bull market has not been destroyed. "Favourable factors such as monetary easing, profit improvement, and deepening reforms will continue to provide upward momentum to the market, and internal and external funds are expected to continue to flow into A shares, so short-term adjustments will not change the upward pattern of A shares."
"China's economy has recovered, so don't worry about the end of the bull market." Jiang Chao, chief economist of Haitong Securities and deputy director of the Institute, pointed out that the economic recovery will accelerate in the second half of the year and is expected to continue. In addition, the improvement of corporate profits will also become an important support for the improvement of A shares. The current low valuation and the blue chip value sector with profitable growth will usher in investment opportunities. (Finish)