A crotch

On the first trading day in May, the Shanghai and Shenzhen stock markets fluctuated and diverged, the Shanghai Index continued to rebound, and the ChiNext Index ushered in an adjustment. On the disk, the media and game sectors set off another wave of daily limit, the big financial sector was strong throughout the day, the Chinese medicine sector broke out, the “Chinese prefix” and “Belt and Road” concept stocks once soared, while the semiconductor sector fell into adjustment.

As of yesterday’s close, the Shanghai Composite Index closed at 3350.46 points, up 0.82%; the Shenzhen Component Index closed at 11273.87 points, down 0.57%; the ChiNext Index closed at 2297.67 points, down 1.16%. In general, individual stocks rose more and fell less, with nearly 100 shares in the Shanghai and Shenzhen stock markets trading at their daily limit.

In terms of funds, the total turnover of the Shanghai and Shenzhen stock markets yesterday was 1,171.7 billion yuan, which was 54.8 billion yuan higher than that of the previous trading day. The net sell of northbound funds was 1.439 billion yuan throughout the day, of which, the net purchase of Shanghai Stock Connect was 1.944 billion yuan, and the net sale of Shenzhen Stock Connect was 3.383 billion yuan.

The media sector set off another wave of daily limit

Yesterday, the media and entertainment sector continued to be strong. Among them, Changjiang Media has three consecutive boards, and more than 20 media stocks such as China Publishing, China Science Communications, and Phoenix Media have daily limit.

On the news, members of the European Parliament have recently reached a proposal on the “Artificial Intelligence Bill”, which highlights that model developers will be required to disclose any copyright materials used in building their systems.

China Securities believes that the important position of data/copyright parties in artificial intelligence has been recognized, and their rights and interests have been further protected. In addition, overseas and domestic “AI model wars” have started, and giant Internet companies, start-up companies, and listed companies have all entered the “battle”. At this stage, the value of resources of related companies with advantages in copyright and data resources will be revalued.

The traditional Chinese medicine sector also performed well. Nearly 10 Chinese medicine stocks, including Sunflower Pharmaceutical, China Resources Sanjiu, Kunming Pharmaceutical Group, and Jiangzhong Pharmaceutical, had their daily limit.

In the first quarter of this year, the overall performance of the Chinese medicine sector was very impressive. Guo Beibei, fund manager of the Chinese medicine ETF, said that the overall net profit of the China Securities Traditional Chinese Medicine Index in the first quarter increased by more than 56%, and the overall performance of the sector was very strong.

Bank stocks lead the big financial sector to strengthen

The big financial sector continued to be active yesterday. Among them, the banking sector was the largest gainer, Minsheng Bank rose by the limit, Bank of China, China Citic Bank, and Bank of Communications rose by more than 5%, and Industrial and Commercial Bank of China and Agricultural Bank rose by more than 4%. In the insurance sector, China Pacific Insurance, PICC, and New China Insurance led the gains. Both A shares and H shares of Ping An of China rose sharply, and Hong Kong stocks rose by more than 7.7%. In the brokerage sector, Changjiang Securities rose nearly 8%, and China Galaxy and Tianfeng Securities rose more than 4%.

The recent frequent changes in the major financial sectors are mainly due to the catalysis of performance. Minsheng Bank recently released its first quarterly report for 2023, showing that the bank realized a net profit attributable to shareholders of 14.232 billion yuan, a year-on-year increase of 3.70%; and realized operating income of 36.773 billion yuan, a year-on-year increase of 0.38%.

Xiangcai Securities recommends to pay attention to the two main lines of valuation restoration of bank stocks: first, the performance of regional banks is resilient, and is expected to take the lead in benefiting from the improvement in fundamentals, and their operating performance may lead the industry; Bank valuations are expected to continue to recover.

Cinda Securities stated that the performance of the brokerage sector in the first quarter has achieved a sharp reversal driven by self-operated business, and the performance flexibility is obvious. In addition, the industry’s leverage ratio has also increased significantly from 3.71 at the beginning of the year to 3.85, which is expected to drive the industry’s subsequent profitability improvement. The first quarterly report shows that NBV of major insurance companies has achieved impressive growth driven by the debt side; under the general trend of downward interest rates, the competitiveness of insurance products “just paid” + “guarantee” is still available; in the long run, the industry’s debt cost is expected to The continuous decline is generally good for leading insurance companies.

The agency recommends a balanced layout for “Red May”

During the “May 1st” holiday of the A-share market, overseas markets experienced relatively large fluctuations. Entering May, under the disturbance of multiple overseas factors, how will A shares operate? Most institutions believe that the A-share market is expected to show relative resilience compared with the global market after the festival, and it is still in the key long-term window throughout the year, and the A-share “Red May” market can be expected.

Yuekai Securities said that looking back on the history of the past 10 years, the market is more likely to rise after the “May 1” holiday. It is recommended that investors make a balanced layout for “Red May” and pay attention to investment opportunities in hard technology and large consumer sectors. Although overseas markets fluctuated during the “May 1st” holiday, the negative impact on A shares is short-term. At present, the overall valuation of A-shares is still attractive. With the performance risks of listed companies basically released, the follow-up market risk appetite is likely to increase, and the growth rate of A-share performance in the second quarter is expected to pick up.

Guohai Securities believes that the market is expected to take advantage of the trend in May, and there is a high probability that the style will return to growth. Looking back at the trend of the A-share market in the past 10 years, from May to July is a period of dominant growth style and good continuity. The reason behind this is that the performance of listed companies has entered a window period. Catalysts that are conducive to the development of emerging industries appear.

Sealand Securities stated that the current liquidity environment is still favorable to the A-share market. With the risk of the U.S. banking industry fermenting again, the Fed’s interest rate meeting in May will most likely be the final chapter of this round of interest rate hikes. The short-term U.S. debt ceiling issue may lead to There is upward pressure on short-term U.S. bond yields, but the impact on long-term yields is limited.

Disclaimer: The Securities Times strives for truthful and accurate information, and the content mentioned in the article is for reference only and does not constitute substantive investment advice, so operate at your own risk

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