(Year-end Economic Observation) The Shanghai Stock Exchange Index Closes to a New High, A-Shares Maintain Global "Magnetic Power" in 2021
China News Service, Beijing, December 31 (Reporter Xia Bin) On the last trading day of 2020, the three major A-share indexes were all red.
At the close of the 31st, the Shanghai Composite Index rose 1.72% to 3473.07 points, not only the highest value of the year, but also a new high since February 6, 2018. The Shenzhen Component Index rose 1.89% to 14,470.68 points, and the ChiNext Index rose 2.27% to report. 2966.26 points.
Throughout the year, A shares also produced a beautiful "transcript."
The Growth Enterprise Market Index rose nearly 65% for the year, the largest annual increase since 2015. The Shanghai Composite Index rose nearly 14% and the Shenzhen Composite Index rose more than 38%.
Among them, the liquor market performed strongly throughout the year, and hot sectors such as semiconductors, virus prevention, food and beverage, military industry, photovoltaics, and new energy vehicles took turns to rise, becoming a strong driving force supporting the upward market.
Compared with the global market, A-share gains are also among the forefront.
As of 15:00 on the 31st, Beijing time, the Dow Jones Index has risen about 6.6% this year, the Nasdaq Index has risen about 43.4%, and the S&P 500 Index has risen about 15.5%.
In Europe, the French CAC40 index fell by about 7% for the year, and the German DAX index rose by about 3.5%.
In Asia, Japan's Nikkei 225 Index rose about 16% over the same period, and the Korean Composite Index rose about 30.7%.
It is worth noting that the overweight of foreign investment is one of the key forces for the upward trend of A shares this year.
The data shows that the net purchase of northbound funds this year exceeds 200 billion yuan (RMB, the same below).
Statistics from the State Administration of Foreign Exchange of China show that from January to September this year, foreign investors increased their holdings of domestic bonds and stocks to US$132.1 billion, an increase of 47%.
"The value of foreign investors' holdings on the stock market has continued to increase, and foreign capital has maintained a net inflow for three consecutive years." China Securities Regulatory Commission Chairman Yi Huiman said in a recent speech.
In 2021, can A shares continue to attract foreign investment and maintain the global "magnetism"?
Mike Shiao, Chief Investment Officer of Invesco Asia (except Japan), told a reporter from China News Agency that the Chinese market is expected to continue to grow under the support of the expanding market scale, which will attract investors to increase their holdings of Chinese stocks.
China is currently the world's second largest stock market.
At present, more than 5,500 Chinese companies are listed on the Chinese mainland, Hong Kong and the United States, providing a large number of investment opportunities, mainly in structural growth areas such as the Internet, consumption, and healthcare.
Sun Yu, general manager of the securities research department of HSBC Qianhai Securities Co., Ltd., said that HSBC Qianhai Securities had previously conducted a survey on the deployment willingness and direction of global asset management companies. The survey showed that most overseas institutions would increase their exposure to Chinese assets. Configuration, including stocks and bonds.
"It is expected that more than 50% of foreign institutional investors will continue to increase their investment in the A-share market next year."
In an interview with a reporter from China News Agency, Wang Hanfeng, managing director and chief strategist of CICC, reminded that compared with the easing policy in 2020, as growth recovers in 2021, the policy will be adjusted accordingly. In this context, We cannot have too high expectations for the stock index of the overall market in 2021, but opportunities for some structural megatrends in China can still be expected, such as technological development, green energy and other related fields.
According to Yang Delong, chief economist of Qianhai Kaiyuan Fund, the A-share market system will continue to mature in 2021.
The implementation of the new securities law, the introduction of new delisting regulations, and the expected full implementation of the registration system have all escorted the A-share market out of the "slow bull and long bull" market.
At the same time, relevant laws and regulations have greatly increased the cost of violations in the A-share market. Financial fraud and infringement of the interests of ordinary investors will be severely cracked down. This will form a strong deterrent effect on criminals and truly protect small and medium investors. interest.
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