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Original title: Shanghai index stands at 3,500 points for A-share “good start” in 2021.
On the first trading day of 2021, A shares ushered in a “good start”. All three major indices opened higher. The Shanghai Composite Index rose to 3,500 points for the first time since January 2018. The ChiNext Index jumped 3.77%. The Shenzhen Component Index and ChiNext Index continued to hit 5-year highs, with the two cities’ turnover also outperforming. One trillion yuan.
Industry leader in equity pooling
Highlights of the Spring Market slopes
At the end of January 4, the Shanghai Composite Index rose 0.86% to close at 3502.96 points; the Shenzhen Component Index rose 2.47% to close at 14,827.47 points; the ChiNext Index rose 3.77% to close at 3,078.11 points. Significant gains in multiple sectors. Data from Flush shows that aquaculture, agricultural product processing, and the military and national defense industries have the highest growth rates, increasing by 6.19%, 5.81% and 4.97% respectively. Beverage manufacturing, non-ferrous foundry and processing, and new materials have also increased by more than 3%; banking, real estate development, Park development had the biggest drop, 1.93%, 1.02% and 0.48% respectively.
In terms of individual stocks, Flush data shows that a total of 2,814 stocks rose on the day, representing around 68%, of which 136 stocks have a daily cap. It’s worth noting that funds have rallied even further for industry leaders, with the share prices of industry leaders such as CATL, Longji, Arowana, BYD, and other industry leaders reaching new highs. At the end of January 4, CATL has risen 15.09% and its market value has exceeded 900 billion yuan; Arowana is up 14.60%, with a total market value of 673 billion yuan, outperforming the Haitian flavor industry.
However, while the index rose sharply and leading stocks frequently set new highs, 1,167 stocks in the two cities still fell and the market differentiation trend was highlighted. 15 stocks like ST King Kong and Beijing Culture dropped their cap, and Aier Ophthalmology fell nearly 9%.
Many institutions expressed optimism about the spring market of A shares. Jufeng Investment Advisor believes that the year-end market late last year and the spring market turmoil has started. The agency noted that with the accelerated recovery of the economy, the market has continued to strengthen its support. From the end of last year to the present, the market has a relatively abundant liquidity, which allows a deep development of the market. With the return of market enthusiasm, the appetite for risk continues to increase and the market’s willingness to do more has become consistent with the improved profitability effect. Industrial Securities believes that January and February are usually the window period for market economic data. At the same time, with the publication of the local “14th five-year plan” and the convening of local “two sessions”, the policies are expected to be intensively implemented and market liquidity and risk appetite gradually eliminated in comparison. with the previous period. Significantly better.
Additionally, A shares are expected to usher in a new wave of incremental funds. “From a short-term perspective, the market may experience a gradual recovery under the catalysis of ample short-term liquidity and the expectation of capital inflows into the stock market,” said Liang Hui, founder and CEO of Xiangju Capital. , to the “Economic Information Daily” reporter that driven by policy, the annuity is expected to further increase the proportion of funds and insurance funds invested in capital assets. The new QFII regulations came into effect on November 2 last year, and the inflow of foreign capital in A shares will also be more efficient. Furthermore, enthusiasm for the issuance of public funds remains very high. Overall, fund activity will pick up further from the end of the year through the spring of the second year, which will become a major force for the index to rise.
Annual report performance forecast for various companies
Performance drives new growth
Industry experts noted that, in the long term, the sustained recovery of the Chinese economy and the good performance of listed companies are important factors supporting market performance. A few days ago, several publicly traded companies issued performance forecasts and most of them are expected to be happy. Among them, China Guangdong Nuclear Technology, Ai Shide and Yiling Pharmaceutical are expected to double their annual net profits, and the performance of Kweichow Moutai, Jinli Permanent Magnet, Xiangxue Pharmaceutical has steadily improved.
On the morning of January 4, China Guangdong Nuclear Technology issued an announcement stating that the net profit attributable to shareholders of listed companies in 2020 is expected to increase by 133.73% to 192.16% during the same. last year’s period. Yiling Pharmaceutical expects net profit attributable to shareholders of publicly traded companies to be 1.15 billion yuan to 1.27 billion yuan in 2020, a year-on-year increase from 90% to 110%. Xiangxue Pharmaceutical said that in 2020, the profit will be 95.968 million yuan to 120 million yuan, a year-on-year increase from 20% to 50%.
On the first trading day of 2021, Kweichow Moutai, whose share price reached the 2,000 yuan mark, published an announcement about production and operation in 2020, showing that the total operating income in 2020 is expected to be about 97.7 billion yuan, a year-on-year increase of about 10%; the net profit is approximately 45.5 billion yuan. , An increase of around 10% year-on-year.
Statistics from the reporter “Economic Information Daily”, of the 861 publicly traded companies that have issued performance forecasts, 157 are expected to increase, 172 have slightly and 75 have had losses. In industry terms, 99 of the 119 computer, communications and other electronic equipment manufacturing industries are expected to be profitable, and 31 are expected to have a growth rate of more than 50%; Of the 90 special equipment manufacturing companies that have announced the announcement, 74 are expected to be profitable and 13 to be profitable. It is expected to be greater than 50%; Among the chemical raw material and chemical manufacturing industries, 88 companies have posted notices, of which 68 are expected to be profitable and 23 are expected to grow by more than 50%; information technology and software service industries, pharmaceutical manufacturing, automobile manufacturing, etc. More than 70% of companies in the industry are also expected to be profitable.
Today, major institutions generally believe that in 2021, A-shares will shift from valuation-driven to performance-driven industries, with high-prosperity industries and leading companies with rapid earnings growth becoming the focus of the new year. Lu Bin, manager of HSBC Jinxin’s pioneering low-carbon fund, noted that the structural characteristics of the bull market of some high-quality leading companies in recent years are very obvious, and they remain optimistic about equity growth opportunities. in the new energy, manufacturing, defense, military and chemical industries. The CEIBS Fund emphasized that after 2021, market expectations for the performance growth of certain growth sectors, such as new energy and the military industry, will also partially digest their high valuations, and attention should be paid to growth stocks. profitable.
“Only stocks that are basically oriented towards the long-term good can guarantee that the stock price will regain its uptrend in the future.” Wang Yinglin, Department of Quantitative Investments at the Morgan Stanley Huaxin Fund, noted that some stocks have been amplified during the short-term slide. The share price is dominated by irrational investors, and investors must wait patiently for the long and short market forces to rebalance.
(Editor-in-charge: Zhao Anni (intern), Li Dong)
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