A-shares opened higher: the index rose 1.28%, the rare earth permanent magnet sector was active

　　Sino-Singapore Jingwei Client reported strong news on July 12th. On the 12th, A-shares opened collectively higher. The Shanghai Composite Index opened 0.6% higher, the Shenzhen Component Index rose 0.85%, and the ChiNext Index rose 1.28%.

Agriculture, rare earth permanent magnets, lithium batteries and other sectors ranked among the top gainers; liquor, mobile games and other sectors were among the top decliners.

　　Source: Wind

　　On the disk, rare earth permanent magnets, lithium batteries, agriculture, securities firms, banks and other sectors ranked among the top gainers; semiconductors, liquor, and medical sectors ranked among the top decliners.

　　In terms of individual stocks, 2953 individual stocks rose, of which Kangsheng, ST Haoyuan, Xinao shares and other stocks rose by more than 5%.

848 stocks fell, of which Yijing Optoelectronics, ST Baling, ST Qibu and other stocks fell more than 5%.

　　On July 9, the central bank's website announced that it decided to lower the deposit reserve ratio of financial institutions by 0.5 percentage points on July 15, 2021 (excluding financial institutions that have implemented a 5% deposit reserve ratio).

　　Huaan Securities Research Report believes that with this RRR cut, short-term funding pressure will ease, but it still needs to be observed in the medium and long term.

Financial data slightly exceeded expectations, and credit is improving, which will support the economy in the short term.

With the increase of government special debts in the third quarter, the superposition of orders from foreign trade companies may currently support growth.

However, there is still greater uncertainty about the growth in the fourth quarter, and it remains to be seen whether credit and funding can form support at that time.

　　Huaan Securities also said that in the short term, the loose pattern will be maintained, and the growth sector will have performance support, which is expected to continue to rise. However, as the window of change gets closer and volatility increases, it is recommended to select high-growth products around the interim report.

　　According to the analysis of Essence Securities, on the whole, the A-share market in the second half of the year is still a volatile market. The structure is tolerant of high valuations, but it is not a significant valuation expansion environment, so as to consider appropriate adjustments to the structure and wait for its withdrawal.

Since the RRR cut this time is a "comprehensive RRR cut", it is expected to release about 1 trillion yuan in long-term funds.

Essence Securities said that monetary policy may maintain a neutral and loose tone in the next phase.

(Zhongxin Jingwei APP)

(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)