Although the U.S. stock market fell, the A-share market still opened higher in early trading on Friday (29th). However, the market had a strong wait-and-see atmosphere before the Chinese New Year. In addition, the A-share market saw a significant retracement this week, as well as the bubble speech of the People’s Bank of China and the recovery of liquidity. This has led to insufficient willingness of investors to undertake.
After midday, it was reported that the People’s Bank of China was going to raise the SLF interest rate. The bond market fluctuated sharply, and the decline of A shares was aggravated. After that, the People’s Bank of China came forward to clarify the rumors and will take legal actions to pursue accountability. A shares rebounded and reduced the decline. However, the Shanghai Composite still fell below the 3,500-point mark in the final, and the week was down 3.4%.
On the disk, stocks such as coal, military, agriculture, insurance, software, semiconductors, and solar have fallen sharply, while stocks in tourism, liquor, hotels, and banks bucked the trend.
As of the close, the Shanghai Stock Exchange fell 0.63% to 3,483.07 points; the Shenzhen Stock Exchange fell 0.61% to 1,482.99 points; the ChiNext index fell 1.04% to 3,128.86 points. Today is the last trading day of January. From the monthly perspective, the Shanghai Stock Exchange rose slightly by 0.3%, the Shenzhen Stock Exchange rose by 2.4%, and the ChiNext stock index rose by 5.5%.
The turnover of the Shanghai and Shenzhen stock markets today is again less than one trillion yuanRMB, Up to 952.2 billionRMB, An increase of 4%.
In terms of northbound funds in and out, the northbound funds were bought over on FridayRMB 2.534 billion yuan, of which Shanghai Stock Connect overbuyRMB 486 million yuan, Shenzhen Stock Connect overboughtRMB 2.048 billion yuan.
Northbound funds have sold more than this weekRMB 6.736 billion yuan, ShanghaiRMB 5.695 billion yuan, Shenzhen Stock Exchange exceededRMB 1.041 billion yuan. Northbound funds bought over contract in JanuaryRMB 40 billion yuan.
Industry News
China’s Spring Festival Transport has started. The Ministry of Transport estimates that the passenger flow of the Spring Festival this year will be significantly reduced. It is expected to carry 1.15 billion passengers, a decline of more than 20% from 2020 and a decline of 60% from 2019. However, civil aviation stocks still rose, Juneyao Airlines rose 4.4%, China Southern Airlines rose 3.7%, and Air China rose 3.6%.
Corporate view
Huaan Securities said that the short-term index may continue to experience large fluctuations, but the stock market still has a good chance in the mid-term, and the long-term pattern of A shares remains unchanged. Investors are advised to pay attention to three directions: first, upstream raw materials and midstream manufacturing, such as non-ferrous metals, chemicals, machinery and other ethnic groups; second, clear industry prospects, performance improvement, and benefits from the 14th Five-Year Plan, such as military industry , Electrical equipment, technology, etc.; the third is financial stocks that are in a better economy and are undervalued.
Shanxi Securities said that the current A-share market is still in a structural bull market, so there will often be rapid corrections. It is recommended that investors should not panic too much and can make a long-term layout for their core holdings.
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