Year of the Tiger market volatility continues to foreign investors in A shares to buy something
The year of the Tiger A shares continued the pre-festival volatility.After a sharp rebound on February 7, the market was violently shaken on February 8, and gem fell into a technical bear market.Wuxi Kant limit once caused all kinds of “MAO” turns diving, ningde times the deepest drop nearly 10%.Since 2022, the momentum of northbound capital has been strong, with A net inflow of more than 20 billion yuan this year, with A substantial inflow of 8.741 billion yuan on Monday and A net outflow of 817 million yuan on Tuesday. International institutions are generally more optimistic about A-shares than local institutions, which is more due to the comparison of stock market valuations between China and the US and the different degrees of monetary policy easing.According to Choice data, in recent 20 days, northbound capital increased the market value of the sectors are: banking, non-banking finance, power equipment, financial/non-metallic new materials, etc.;According to Datayes, nBI capital has increased its holdings the most since the beginning of the year in the following order: China Merchants Bank, Guodian Nangrui, Ping an Of China, Enjie Shares, Sunshine Power, Industrial Bank, Yangtze Power, etc.A number of institutions told reporters that foreign capital is obviously in the layout of a higher margin of safety of traditional financial stocks, adding positions of high prosperity but since the fourth quarter of last year since the depth of the retreat of the new energy sector.Shanghai Investment Morgan told the first financial reporter that although the trading volume increased slightly on the 8th, it still did not exceed 900 billion yuan, indicating that market funds have not been fully returned, and market confidence is still to be established.Early high valuation growth stocks continue to adjust, and with low valuation, performance beyond expectations of the reversal of the plight of the target is also expected to be favored by the market.By the end of the 8th, the main board was stable, but the growth Enterprise Market ended down 2.5%, compared with the stage high in November last year, the index adjusted by more than 20%, entering the technical bear market area.By sector, coal rose 5.56%, followed by general (+3.22%) and social services (+2.94%).On the other hand, power equipment (-3.45%) led the decline, followed by electronics (-1.82%) and food and beverage (-1.47%).Specifically, 8 led all the way down the pharmaceutical, liquor, new energy and semiconductor plate can be said to have their own difficult to read.In the pharmaceutical sector, sources said the crackdown on the industry came from the “Unverified List” issued by the Bureau of Industry and Security of the US Department of Commerce yesterday, which includes Pharmacokines.Affected by this, “Yao Ming” is the price of the collective plunge in the morning, Hong Kong shares of Yao Ming Bio once fell more than 30%, A shares of Wuxi Apptec is firmly sealed limit;New energy and semiconductor, the iron and steel industry carbon peak delay has a negative impact on the new energy plate, leading to the collective weak science and technology stocks;In addition, liquor consumption during the Spring Festival was not as good as expected due to the influence of “local Chinese New Year”, causing share prices to fall.According to the reporter, since the beginning of the year, four of the top 20 companies with the largest net buying volume of NORTHbound capital are bank stocks, respectively: China Merchants Bank, Industrial Bank, Ping An Bank, Bank of Jiangsu;Non-silver financial sector includes: China Ping An, Huatai Securities;Guodian Nanrui, Enjie Shares, sunshine power supply, Yangtze Power, Longji shares, Putailai, Rongbai science and technology are new energy vehicles, photovoltaic concept stocks.So far this year, bank stocks are indeed unremarkable.An international asset management agency investment manager recently told reporters that it did increase the holding of high-quality a-share banks, due to the low valuation and loose policy expectations, increase the logic of capital management, currently hold A higher margin of safety.There were also bets on better credit data for January.Liao Zhiming, chief banking analyst of China Merchants Securities, told reporters that according to previous rules, new loans in January are expected to increase more than the same month last year, and credit issuance is expected to increase 3.95 trillion yuan in January (3.58 trillion yuan in January 2021, 1.13 trillion yuan in December).Meanwhile, he expects M2 to reach 241.1 trillion yuan at the end of January, up 9 percent year on year, and social finance to grow 10.2 percent.On January 18, the central bank explicitly proposed to “guide financial institutions to effectively expand credit supply” and “advance the force.”It can be seen that the current policies clearly guide banks to increase credit release, so it is expected that the pace of the annual credit release is close to “4321”.In addition, foreign investment in the fourth quarter since the depth of the new energy related plate.According to the reporter, under the trend of global “carbon neutrality”, the new energy sector is still the same prosperity, and the sector is rare among foreign investment with a high consensus on the Chinese theme, so after the continued valuation, there is no lack of foreign investment will choose to buy on the low.Meng Ning, chief investment officer of Lubomar China Equities, said in an interview with China Business News ahead of the Spring Festival, “For new energy track stocks, if the 30% compound annual growth rate (CAGR) of companies:The valuation of 40 times may be reasonable, but before to 50~60 times, or even 100 times, there must be an irrational component, the possibility of subsequent killing valuation will increase.”It’s not hard to tell if it’s worth buying now — there’s no change in the economy, so if you go down to 30 times, you can make 30 percent profit, and if you go back to 40 times, you’re still limited.”New energy vehicle sales data is also more bright, the relevant plate rebounded sharply on Monday, the relevant Hong Kong stocks in February 4 reflected good news.For example, BYD sold 93,168 new energy vehicles in January, compared with 20,178 units a year earlier, a 361% increase.The new force of car making also released the delivery data of the first month of 2022. Xiaopeng automobile has the highest delivery volume of 12,922 units, up 115% year-on-year, and its delivery volume has exceeded 10,000 units for five consecutive months.At the same time, the ideal car in January delivery of 12,268 units, year-on-year growth of 128.1%, has achieved three consecutive months of delivery over ten thousand.Downstream new energy operators are also foreign investment optimistic plate.Shen Wan Hongyuan believes that, with a series of policies to eliminate market concerns, the year of green electricity tiger is expected to continue high prosperity, the National Development and Reform Commission on January 28 issued “to accelerate the construction of a unified national power market system guidance”, clearly put forward 2025 to build “conducive to the development of new energy, energy storage and other market trading and price mechanism”.In addition, with the huge losses and profits of the transition thermal power companies exhausted, it is expected to continue to cash in with the implementation of coal price agreements and market transactions across the country. Compared with pure new energy operators, the green power companies transformed from traditional energy have more strategic configuration value.Key targets of electric energy include thermal power transformation (Guangdong Electric Power Co., LTD. A, Inner Mongolia Huadian), new energy (Three Gorges Energy, Longyuan Electric Power co., LTD., JI Power Co., LTD.), power grid and comprehensive energy (State Grid Information Communication, Fuling Electric Power).Similarly, Liu Hong, director of equity investment in China of Fordun Investment Management, told China Business News that he is more optimistic about new green power plants. Green license transactions will open up profit space in the future, but “old players” have the problem of giving up subsidies.Since non-water renewable energy projects that have been connected to the grid from 2017 to 2020 typically receive national renewable energy subsidies ranging from 0.1 yuan to 0.7 yuan per kilowatt-hour of electricity, trading green permits means giving up the subsidy.From the green card trading platform, the current willing to sell the price is basically spread to the range of 0.12 to 0.7 yuan per KWH of electricity.The market is approaching the “emotional bottom” pessimism is one of the reasons for the continued market correction.It is widely expected that the market is expected to stabilize gradually with the introduction of follow-up supportive policies.’The economy is expected to stabilize in the second quarter,’ Wu Zhaoyin, chief strategy director at AvIC Trust, told reporters.The mid-level PMI was 50.1 in January, down from 50.3 in December, while the Caixin PMI was 49.1 in January, significantly lower than 50.9 in December and the lowest since February 2020, reflecting the weak manufacturing sector.Money is now hoarded in banks, which cannot lend without good projects.Monetary easing, but no money flowing into equities.This problem is expected to be gradually resolved in the second quarter, and the situation is expected to improve after the two sessions of fiscal policy and the approval of large-scale projects by the National Development and Reform Commission.On February 8, the People’s Bank of China, bank of China insurance regulatory commission issued “about affordable rental housing related notice loan is not included in the management of real estate loan concentration, clear of affordable rental housing projects related to the loan into the real estate loan concentration management, encourage the banking financial institutions shall, in accordance with the compliance, risk control, in accordance with the commercial sustainable principles,We will increase support for the development of low-income rental housing.Not alone, Morgan Stanley Huaxin fund told reporters: “We believe the current market is close to the ’emotional bottom’, major stock indexes and industries have been fully adjusted, with a follow-up rebound basis.”The agency said that in terms of medicine, the US list was at the lightest end of the unverified list.Yao Ming also issued a statement this morning that the “unverified list” is not known as the “entity list” or “blacklist” of the United States.Said in a statement, medicine biological bioreactor has been imported some hardware controller and hollow fiber filter, the controller by the U.S. export controls, but the business of the company or has no effect on global partners of continuous service, due to Shanghai and wuxi facilities after don’t need such devices, therefore very little influence on its import.The statement also said the company is taking interim measures to remove the subsidiaries from the list before the inspection, so there is no cause for undue concern.In terms of science and technology, the new energy and semiconductor sectors are still the focus of the market. Driven by the dual carbon target, the long-term development logic brought by industrial transformation and upgrading remains unchanged.Liquor, showing a typical “tower” characteristics, the industry is still to upgrade the structure as the main line, on Morgan said, is currently in the “bottom” stage.In the continuous easing of funds, policies still have room to increase, coupled with the proportion of the performance of the environment is not low, the future market can still look forward to.If the market appears larger adjustment, can be seen as accelerating the bottom of a process.