On February 5, the three major A-share indexes continued to fall after the open, and the Shanghai Composite Index fell below 2,700 points again. During the session, the Shanghai Composite Index and the ChiNext Index fell by more than 3%, the Shenzhen Component Index fell by more than 4%, and more than 1,000 stocks in the two cities fell to the limit. In the morning, three topics related to A-shares rushed to the hot search on Weibo.
Near midday, the index bottomed out and rebounded, and the Shanghai Composite Index and ChiNext Index fell back to less than 2%.
Heavyweight stock protection
As of **, the Shanghai Composite Index fell 182%, the Shenzhen Component Index fell 228%, GEM fell 17%。Wind data shows that there are more than 5,100 stocks in Shanghai, Shenzhen and Beijing, more than 3,000 stocks in the three cities, a decline of more than 8%, and a limit of 961 stocks.
On the disk, most of the market capitalization ranks in the forefront, and the bank and other weighted sectors are more active, among which Industrial and Commercial Bank of China, PetroChina, China Shenhua, Sinopec, etc. all rose by more than 2%.
WuXi AppTec, the leader of the CRO sector, which once hit the limit in early trading, quickly turned red intraday. On the morning of the 5th, WuXi AppTec issued a clarification announcement on the hotly discussed US Biosafety Act. In the announcement, WuXi AppTec reiterated that the company has not, is and will not pose a risk to any country in the past, and will not pose a risk to any country in the future, and will continue to communicate with relevant parties in the draft legislative process. In addition, WuXi AppTec also mentioned that the company does not have a human genomics business, and its existing businesses do not collect human genome data, and it has no affiliation with any ** or its military organizations.
When the market will turn around
According to the Everbright ** research report, from the perspective of valuation, stock and bond cost performance, turnover rate, proportion of financing transactions and other indicators, the current A** market may be at the bottom, and the current policy is actively exerting force, and incremental funds such as funds represented by ** ETFs and repurchase funds of listed companies are actively pouring into the A** market, which may help the A** market stabilize. In addition, judging from the current disclosed 2023 annual performance forecast, A-share earnings may continue to improve, but the current market expectations are still relatively weak, and profit expectations are still being adjusted downward, dragging down the performance of A**. Therefore, in the future, it is necessary to pay attention to the direction of adjustment of earnings expectations, and if there is a certain degree of upward adjustment, or reflect the market's expectation of an economic rebound, it will help the A** market stabilize and rebound. On the whole, after the early adjustment, the opportunities of the A** field outweigh the risks.
CITIC** believes that there must be strong external intervention or reversal of expected actual policy measures to restore market confidence. At present, the A** market is once again in the process of negative feedback of liquidity cycle chain, which has little to do with domestic economic fundamentals and external geopolitical disturbances, and the deterioration of the trading ecology is the main reason. February is an important observation period to interrupt negative feedback or the continuous release of risks, and strong external intervention or reversal of expected actual policy measures must be required to restore market confidence.
In terms of allocation, it is currently recommended to continue to focus on high-quality bonus blue chips. There is a kind of "leveling" to support the bottom, the conservative position adjustment of institutions and the low-volatility and high-dividend sectors of central enterprises catalyzed by the assessment reform of the State-owned Assets Supervision and Administration Commission are the main lines of the most consensus at present. After the negative feedback is blocked, it is recommended to continue to pay attention to the high-performing blue-chip varieties in the technology, pharmaceutical, and new energy sectors whose valuations have been further revised down due to liquidity shocks in the early stage.
Valuations of the A** market have fallen further, while risk premiums have remained elevated. The seesaw effect of stocks and bonds was still obvious last week, with the yield on 10-year Treasury bonds falling to the lowest since 2002, the yield on 30-year Treasury bonds falling rapidly, and market valuations continuing to fall. As of February 2, the CSI 300 P/E ratio (excluding negative values) was only 101 times for the last five years 12% quantile; The CSI 300 risk premium (1 P/E ratio – 10-year Treasury yield) is 71%, reaching the highest level in nearly five years, reflecting that the recent market sentiment has fallen to the "freezing point".
According to the Financial Associated Press, recently, affected by the continuous adjustment of the market, the number of A-share broken net shares has been growing. As of February 2, excluding the negative net assets, the net rate of 667** has been less than 1 times, and the overall net breaking rate of the market has reached 1247%, surpassing the previous historical bottom breaking rate data.
The SFC speaks out
Let the counterfeiters "go bankrupt and sit in prison".
According to the news of the China Securities Regulatory Commission on February 4, information disclosure is the basis for the healthy and orderly operation of the capital market, the premise for investors to make value judgments and investment decisions, and the top priority of the CSRC's regulatory law enforcement. Since the Office of the Central Committee and the Office of the State Council jointly issued the "Opinions on Strictly Cracking Down on Illegal Activities in Accordance with the Law", the China Securities Regulatory Commission has further strengthened the crackdown on illegal information disclosure such as fraudulent issuance and financial fraud, continued to purify the market ecology, and improved the investability of listed companies. In the past three years, a total of 397 cases of illegal information disclosure of listed companies have been handled, a year-on-year increase of nearly 20%, 523 administrative penalties have been imposed, involving 1,932 relevant responsible persons, 168 people have been banned from entering the market, and 116 suspected criminal cases have been transferred to the public security organs, resolutely eliminating the "black sheep" and accelerating the promotion of "survival of the fittest".
The China Securities Regulatory Commission (CSRC) has always carried out an all-round "zero tolerance" crackdown on fraudulent issuances, resolutely blocked the issuance and listing of "sick people", and protected the legitimate rights and interests of investors from the source. The first is to strengthen three-dimensional accountability, so that counterfeiters can "go bankrupt and sit in prison". For example, the IPO issuance documents of Zeda Yisheng and Amethystum Storage, which are listed on the Science and Technology Innovation Board, were subject to major financial fraud, and the CSRC imposed fines of 142.5 million yuan and 90.71 million yuan on the two companies and the responsible persons respectively, and the public security organs took criminal coercive measures against more than 10 responsible personnel, and investors received more than 1.3 billion yuan in civil compensation. The second is to implement the concept of "declaration is responsible", "check and withdraw", and "leave it". Strictly investigate and deal with 5 cases of submitting false financial data in the issuance declaration stage, and impose fines of 13 million yuan and 11.5 million yuan respectively on the two companies of Blue Mountain Technology and Sierxin and their responsible persons. The third is to adhere to the full coverage of the crackdown, covering key links such as declaration, registration, and issuance, involving key sectors such as the main board, the science and technology innovation board, the growth enterprise board, and the Beijing Stock Exchange. For example, the CSRC imposed fines of 99.7 million yuan and 77 million yuan on the two companies and the responsible persons respectively for disclosing false annual reports and using false financial data to fraudulently issue convertible bonds.
The China Securities Regulatory Commission said that the recent period is a critical period for the formal disclosure of the annual report, and the majority of listed companies are also requested to take the case as a warning to ensure that the information disclosure is true, accurate and complete.
According to the release of the China Securities Regulatory Commission, on February 4, Yi Huiman, Secretary of the Party Committee and Chairman of the China Securities Regulatory Commission, presided over a meeting of the Party Committee to convey, study and implement the spirit of the relevant meetings, and deploy and maintain the stability of the capital market.
The meeting proposed that it is necessary to accelerate the investigation and visit of listed companies, effectively solve specific difficulties and problems, and increase the support of high-quality listed companies. Strictly control the entry of listed companies, increase delisting, and vigorously improve the quality of listed companies. It is necessary to thoroughly investigate clues on violations of laws and regulations, and severely crack down on major illegal acts such as market manipulation, malicious short-selling, insider trading, and fraudulent issuance in accordance with the law. It is necessary to encourage and support all kinds of investment institutions to increase counter-cyclical layout and guide more medium and long-term funds to enter the market. It is necessary to listen carefully to the voices of the majority of investors, respond to investors' concerns in a timely manner, and protect the legitimate rights and interests of investors.
The meeting stressed that it is necessary to actively cooperate with relevant parties to make greater efforts to coordinate the implementation of various measures to stabilize the market, stabilize expectations and confidence, and resolutely prevent abnormal market fluctuations.
*: The daily economic news is synthesized from wind, issued by the China Securities Regulatory Commission, and announcements of listed companies.