China and Singapore Jingwei client March 16th. On Monday (16th), the three major A-share indexes opened higher collectively, after which the shock turned green. The GEM index fell more than 2% during the session, and the mask concept stocks hit a daily limit. As of the close of trading, the Shanghai Composite Index was reported at 2871.49 points, a decrease of 0.55%, and the transaction volume was 206.155 billion yuan; the Shenzhen Component Index was reported at 10639.09 points, a decrease of 1.77%, and the transaction volume was 332.358 billion yuan;
On the disk, the catering, petrochemical, forestry, agricultural comprehensive, and Chinese medicine sectors led the gains; communications equipment, electronics manufacturing, components, power equipment, semiconductors and other sectors led the decline.
In terms of concept stocks, masks, super fungi, cotton, Chinese medicine, and artemisinin led the gains, while wireless charging, wireless headphones, sensors, smart speakers, and 3D cameras led the decline.
As for individual stocks, 1930 stocks rose, of which 150 stocks such as Gaolan, Zhongke Haixun, Shirong Zhaoye rose more than 5%. 1697 stocks fell, of which 149 stocks including Dongfang Guoxin, CITIC Publishing, and Tianci Materials fell more than 5%.
How does the Fed cut interest rates urgently and the central bank will not follow? How will it affect A shares?
The central bank officially lowered the inclusive financial directive today (16th), releasing a total of 550 billion yuan of long-term funds. At the same time, the central bank announced that it would launch a medium-term loan facility (MLF) of 100 billion yuan on the same day and not carry out a reverse repurchase operation. Although the central bank's implementation of MLF operations in line with targeted reductions is in line with market expectations, interest rates remain unchanged. 100 billion one-year MLF operations, with an interest rate of 3.15%, remain the same as before. The market generally believes that the central bank has not followed the pace of the Fed's rate cuts, but has instead chosen to "keep the pace."
Coupled with the funds released by the RRR cut, the central bank released a total of 650 billion yuan. However, analysts said that the current liquidity investment is more focused on the long-term, and MLF is adopted instead of OMO after the targeted reduction, which means that although there are severe fluctuations in the external market, the domestic is still relatively stable, and the central bank does not want excessive short-term funds. Ample.
On the 15th local time, the Federal Reserve started to cut interest rates, reduce interest rates to the 0-0.25% range, and launched a large-scale quantitative easing plan of US $ 700 billion. Dongguan Securities analysis believes that the LPR quote in February has been slightly reduced, and the Fed has cut interest rates again in the background, March LPR quotes are still likely to be further reduced. It is expected that there is still room for further release of domestic monetary policy in the future, which will support the overall capital market.
"The second time this year, the RRR cut will release the signal of stable expectations, which will also play a positive role in the economic expectations and the stable operation of the capital market." Guoyuan Securities believes that from the current market valuation, under the impact of the global market, A The stock valuation was adjusted to a lower position again, and the epidemic was more an exogenous shock, which did not change the market logic established before. As countries attach more importance to the epidemic situation, the introduction of relevant prevention and control policies will gradually improve the epidemic situation, and the market will have more room for rebound.
Shanxi Securities said that the trend of the spread of overseas epidemics is not optimistic. It is necessary to be alert to the possibility of repeated epidemics. The short-term market uncertainty has increased significantly, and investors need to be more cautious. Considering that the current valuation of the A-share market is still in a reasonable range, and the trend of improvement in the medium and long term has not changed, it is recommended to keep active attention, intervene in dips, and choose the optimal configuration in the medium and long term. Focus on counter-cyclical large infrastructure, transformation and upgrading of new infrastructure, anti-inflation agriculture, and rebirth of nirvana. (Zhongxin Jingwei APP)
(The opinions in this article are for reference only and do not constitute investment advice. Investment is risky and you must be cautious when entering the market.)